May 10, 2018
Median-Priced Homes Not Affordable for Average Wage Earners
ATTOM Data Solutions, the curator of the nation's premier property database, released its 2018 U.S. Home Affordability Report, which shows that median home prices in Q1 2018 were not affordable for average wage earners in 304 of 446 U.S. counties, including Fairfax, analyzed in the report (68 percent).
The report determined affordability for average wage earners by calculating the amount of income needed to make monthly house payments — including mortgage, property taxes and insurance — on a median-priced home, assuming a 3 percent down payment and a 28 percent maximum "front-end" debt-to-income ratio.
In the report, the median income needed to purchase a home in Fairfax County was $144,240 (3 percent Down and 28 percent Front-End debt-to-income ratio). The annual median sales price was listed at $470,000. ATTOM Data Solutions created an interactive map, which identifies all 446 counties in the report and can be viewed at: https://public.tableau.com/profile/darenjblomquist#!/vizhome/Q12018HomeAffordabilityIndex/Dashboard1.