It is getting more difficult to afford a home in America. According to a report from ATTOM Data Solutions, a real estate and property data provider, median home prices in 2018’s fourth quarter hit their least affordable levels in over a decade.
That quarter, homes sold for a median price of $241,250, a 9% increase from the fourth quarter of 2017, while the average annualized weekly wage in the United States of $56,381 climbed by only 3%. However, home prices actually became more affordable in 58% of counties over that same period.
For many Americans, owning a home is financially unrealistic. In some counties, the median home price is more than four times higher than what someone could afford based on the area’s average earnings.
24/7 Wall St. reviewed information from ATTOM Data Solutions on income needed to buy a home and average annual wages in each county to determine America’s 25 least affordable housing markets. The income needed to buy a house is calculated by assuming a 3% down payment and a 28% maximum “front-end” debt-to-income ratio.
The 25 least affordable housing markets in the United States are clustered in just four states — Massachusetts, Hawaii, New York, and California. All seven New York counties are either in or just outside New York City. The 15 least affordable California housing markets are spread out across the state.
To determine the 25 least affordable housing markets in the United States, 24/7 Wall St. reviewed county-level data from ATTOM Data Solutions. Counties were ranked based based on the affordability ratio — median housing prices in the area relative to average annual wages. Home sale price data and the total number of housing units also came from ATTOM. The income needed to buy a house is calculated by assuming a 3% down payment and a 28% maximum “front-end” debt-to-income ratio.
Click here to see America’s least affordable housing markets.
Source: j76n / Getty Images
25. Barnstable County, Massachusetts
> Income needed to buy a house: $116,674
> Average annual wages: $47,190
> Q4 median sales price: $407,225
> Housing units: 161,632
[in-text-ad]
Source: Art Wager / Getty Images
24. San Diego County, California
> Income needed to buy a house: $151,138
> Average annual wages: $60,944
> Q4 median sales price: $545,000
> Housing units: 1,187,644
Source: Thinkstock
23. El Dorado County, California
> Income needed to buy a house: $124,489
> Average annual wages: $49,439
> Q4 median sales price: $444,500
> Housing units: 88,882
Source: alarico / Getty Images
22. Nassau County, New York
> Income needed to buy a house: $160,010
> Average annual wages: $61,360
> Q4 median sales price: $520,000
> Housing units: 467,127
[in-text-ad-2]
Source: choness / Getty Images
21. Los Angeles County, California
> Income needed to buy a house: $167,182
> Average annual wages: $63,947
> Q4 median sales price: $600,000
> Housing units: 3,490,118
Source: Wikimedia Commons
20. Westchester County, New York
> Income needed to buy a house: $193,332
> Average annual wages: $72,566
> Q4 median sales price: $550,000
> Housing units: 369,925
[in-text-ad]
Source: OlegAlbinsky / Getty Images
19. Rockland County, New York
> Income needed to buy a house: $144,536
> Average annual wages: $52,819
> Q4 median sales price: $415,000
> Housing units: 104,651
24/7 Wall St.
Source: bpperry / Getty Images
18. Santa Barbara County, California
> Income needed to buy a house: $146,990
> Average annual wages: $53,196
> Q4 median sales price: $525,000
> Housing units: 154,574
Source: Roman Babakin / Getty Images
17. Richmond County, New York
> Income needed to buy a house: $141,594
> Average annual wages: $50,440
> Q4 median sales price: $500,000
> Housing units: 178,603
[in-text-ad-2]
Source: trekandshoot / Getty Images
16. Alameda County, California
> Income needed to buy a house: $219,464
> Average annual wages: $75,192
> Q4 median sales price: $800,000
> Housing units: 592,796
Source: Art Wager / Getty Images
15. Honolulu County, Hawaii
> Income needed to buy a house: $155,922
> Average annual wages: $52,364
> Q4 median sales price: $572,875
> Housing units: 342,982
[in-text-ad]
Source: SpVVK / Getty Images
14. San Mateo County, California
> Income needed to buy a house: $368,242
> Average annual wages: $122,551
> Q4 median sales price: $1,350,000
> Housing units: 273,798
24/7 Wall St.
Source: Arthurpreston / Getty Images
13. Ventura County, California
> Income needed to buy a house: $165,499
> Average annual wages: $54,600
> Q4 median sales price: $595,250
> Housing units: 284,759
Source: franckreporter / Getty Images
12. Napa County, California
> Income needed to buy a house: $169,587
> Average annual wages: $55,042
> Q4 median sales price: $617,500
> Housing units: 55,301
[in-text-ad-2]
Source: Sanfranman59 / Wikimedia Commons
11. Sonoma County, California
> Income needed to buy a house: $166,090
> Average annual wages: $53,404
> Q4 median sales price: $600,000
> Housing units: 207,058
Source: TraceRouda / Getty Images
10. Orange County, California
> Income needed to buy a house: $196,136
> Average annual wages: $62,192
> Q4 median sales price: $690,000
> Housing units: 1,072,121
[in-text-ad]
Source: Boogich / Getty Images
9. Queens County, New York
> Income needed to buy a house: $175,941
> Average annual wages: $53,872
> Q4 median sales price: $625,000
> Housing units: 846,689
24/7 Wall St.
Source: Bike_Maverick / Getty Images
8. Maui County, Hawaii
> Income needed to buy a house: $149,143
> Average annual wages: $45,565
> Q4 median sales price: $549,225
> Housing units: 71,493
Source: heyengel / Getty Images
7. San Francisco County, California
> Income needed to buy a house: $375,491
> Average annual wages: $113,802
> Q4 median sales price: $1,340,000
> Housing units: 386,755
[in-text-ad-2]
Source: GCShutter / Getty Images
6. New York County, New York
> Income needed to buy a house: $408,977
> Average annual wages: $122,720
> Q4 median sales price: $1,426,000
> Housing units: 866,644
Source: DPKuras / Getty Images
5. San Luis Obispo County, California
> Income needed to buy a house: $158,489
> Average annual wages: $47,034
> Q4 median sales price: $570,000
> Housing units: 119,399
[in-text-ad]
Source: Thinkstock
4. Monterey County, California
> Income needed to buy a house: $164,426
> Average annual wages: $47,528
> Q4 median sales price: $585,000
> Housing units: 140,169
24/7 Wall St.
Source: Ed-Ni-Photo / Getty Images
3. Santa Cruz County, California
> Income needed to buy a house: $212,239
> Average annual wages: $50,297
> Q4 median sales price: $750,500
> Housing units: 105,255
Source: Sanfranman59 / Wikimedia Commons
2. Marin County, California
> Income needed to buy a house: $315,524
> Average annual wages: $71,162
> Q4 median sales price: $1,125,000
> Housing units: 112,259
[in-text-ad-2]
Source: NicolasMcComber / Getty Images
1. Kings County, New York
> Income needed to buy a house: $216,146
> Average annual wages: $46,982
> Q4 median sales price: $792,500
> Housing units: 1,021,747
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
