According to ATTOM’s Q4 2024 U.S. Home Affordability Report median-priced single-family homes and condos are still less affordable compared to historical norms in 99 percent of counties with sufficient data. This trend, observed since 2022, reflects a persistent challenge in homeownership, with housing costs consuming historically significant portions of incomes nationwide.
The report indicates that major expenses for median-priced homes now consume 34% of the average national wage, up over one percentage point both quarterly and annually. This figure exceeds the 28% lending guideline commonly preferred by lenders.
ATTOM’s latest home affordability analysis revealed that current and historic affordability downturns highlight how home ownership remains a financial challenge for average workers. With the national median home price reaching $364,750 and mortgage rates still above 6%, ownership expenses continue to outpace wages, keeping affordability out of reach.
The report stated that fourth-quarter trends reversed the modest improvement seen in the third quarter, with typical mortgage payments, property taxes, and insurance now consuming nearly 13 percentage points more of average wages than the low recorded in early 2021, before mortgage rates began to rise.
The latest home affordability analysis assessed affordability for average wage earners by estimating the income needed to cover key monthly homeownership expenses—such as mortgage payments, property taxes, and insurance—for a median-priced single-family home or condo, based on a 20 percent down payment and a 28 percent “front-end” debt-to-income ratio. This required income was then compared to annualized average weekly wage data from the U.S. Bureau of Labor Statistics.
The affordability index found that in the fourth quarter of 2024, home ownership was less affordable than historical averages in 98.2% of the 566 counties analyzed—consistent with Q3 2024 and Q4 2023 but significantly higher than the 4.6% recorded in early 2021.
In this post, we take a more granular look at the data behind ATTOM’s latest U.S. Home Affordability Report to reveal the top 10 U.S. counties with the largest quarterly increase in Affordability Indexes in fourth-quarter 2024. Among those counties with a population of at least 100,000 and at least 50 single-family home and condo sales in the fourth quarter of 2024, those with the largest increase in affordability index (under 100 is less affordable than historic average) are enumerated. Additionally, we provide a comparison with the Q3 2024 Index and the least affordable index and quarter since 2005.
#10 – Hinds County, MS
- Q4, 2004 Affordability Index: 72
- Q3, 2024 Affordability Index: 63
- Least Affordable Index and Quarter since 2005: 72 – Q2, 2006
#9 – Schuylkill County, PA
- Q4, 2004 Affordability Index: 90
- Q3, 2024 Affordability Index: 77
- Least Affordable Index and Quarter since 2005: 71 – Q3, 2023
#8 – Cambria County, PA
- Q4, 2004 Affordability Index: 89
- Q3, 2024 Affordability Index: 76
- Least Affordable Index and Quarter since 2005: 58 – Q1, 2024
#7 – Grayson County, TX
- Q4, 2004 Affordability Index: 72
- Q3, 2024 Affordability Index: 61
- Least Affordable Index and Quarter since 2005: 59 – Q4, 2005
#6 – Mobile County, AL
- Q4, 2004 Affordability Index: 114
- Q3, 2024 Affordability Index: 96
- Least Affordable Index and Quarter since 2005: 75 – Q3, 2023
#5 – Robeson County, NC
- Q4, 2004 Affordability Index: 88
- Q3, 2024 Affordability Index: 74
- Least Affordable Index and Quarter since 2005: 55 – Q3, 2007
#4 – Jefferson County, NY
- Q4, 2004 Affordability Index: 93
- Q3, 2024 Affordability Index: 78
- Least Affordable Index and Quarter since 2005: 5 – Q3, 2013
#3 – Niagara County, NY
- Q4, 2004 Affordability Index: 70
- Q3, 2024 Affordability Index: 58
- Least Affordable Index and Quarter since 2005: 51 – Q1, 2015
#2 – Peoria County, IL
- Q4, 2004 Affordability Index: 104
- Q3, 2024 Affordability Index: 84
- Least Affordable Index and Quarter since 2005: 61 – Q2, 2006
#1 – Mercer County, PA
- Q4, 2004 Affordability Index: 107
- Q3, 2024 Affordability Index: 86
- Least Affordable Index and Quarter since 2005: 36 – Q1, 2024
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Written by: Megan Hunt