Homeowners Must Now Devote 35% of Their Income to a Mortgage

Count yourself fortunate if you live in one of the four counties – among 578 studied – where home prices are more affordable than they used to be. For almost everyone else, affordability has worsened across the nation, with significant increases in home prices even between the second and third quarters of this year.

According to a new analysis by ATTOM, “The nationwide median price of single-family homes and condos is up 2% [from $344,000] in the second quarter, to a new record of $351,250.” In comparison to $329,813 in 3Q 2022, the increase is 6.5%. As a result, homebuyers are having to give up an average 35% of their income to get a loan – up from the historical average of 28%.