Dave Paciello and Gloria Rocci, from One Reality Partners, joins us for Newstalk to talk about the affordability in the housing market.
As a decade-long economic boom pushes into 2020, affording a home isn't expected to become much easier for the average American, according to recent reports.
Average wage earners can't afford to buy a home in 344 of 486 counties, or 71% of the U.S., according to a fourth-quarter analysis from real estate research firm Attom Data Solutions. That's just a slight improvement from from 73% in the third quarter and 75% a year earlier, the Attom report found.
One reason for the glacial pace of improvement? A booming real estate market amid lower mortgage rates.
Home prices rose 9% year-over-year in the last three months of 2019, making the "typical home" a "financial stretch for average wage earners," Todd Teta, chief product officer with Attom, said in the report.
To cross the current national median home price of $257,000, home-buyers need a gross income of $67,647, the report said — yet the average annual wage in the U.S. was $58,214, the report notes.