Home Affordability Hits 8-Year Low 

Blomquist says the declining affordability of single-family homes is “not surprising.”

IRVINE, CA—It’s not only Millennials who are getting priced out of single-family housing. ATTOM Data Solutions’ Q1 2017 US Home Affordability Index shows that one out of four county housing markets analyzed were less affordable than their historic affordability averages in the first quarter of this year. That’s the highest share of markets below the normal affordability index since the end of 2009.

Nationally, the affordability index in Q1 was 103, down from 108 in the prior quarter and off from 119 a year ago to the lowest level since Q4 2008. The index of 103 translates to 33.6% of average weekly wages needed to buy a median-priced home nationwide. Although that’s below the historic average of 34.6%, it represents the highest share of wages needed in eight years.