The Unaffordability Crisis: Home Ownership Out of Reach for Majority of Americans

A new report from real estate data provider ATTOM reveals that 99% of U.S. counties have home prices that are unaffordable for the average American, who earns $71,214 a year. Rising mortgage rates, currently at 7%, and a limited housing supply due to homeowners not selling at elevated rates are driving up housing costs. The national median existing home price is $407,100, and as long as mortgage rates continue to rise, prices will remain unaffordable. This lack of affordable housing disproportionately affects first-time homebuyers, particularly younger millennials. Cities with the most unaffordable homes include Los Angeles, Chicago, Phoenix, San Diego, and Orange County, while communities surrounding Cleveland, Detroit, Houston, Philadelphia, or Pittsburgh have more affordable homes compared to median salaries.