ATTOM Data Solutions’ latest Home Affordability Index indicated that affordability in Q4 2018 stood at its lowest level since Q3 2008. In just one year, from last year to this, affordability dropped -15%.
ATTOM targeted 12 cities as being in housing bubble danger. Below are the rankings by the gap between the annual increase in home prices and the annual increase in wages. (An index value less than 100 points to prices being less affordable than historic averages.)
- Hilton Head Island – Bluffton – Beaufort SC
– Sales price of $306,750 – +10% annual increase
– Annual wages of $38,649 – -1% annual decrease
– Gap between prices and wages – 11%
– Affordability index of 95
- Ogden – Clearfield UT (Weber and Davis Counties)
– Weber County
Sales price of $244,200 – +13% annual increase
Annual wages of $41,444 – +2% annual increase
Gap between prices and wages – 11%
Affordability index of 77
- Davis County
- Sales price of $314,688 – +13% annual increase
- Annual wages of $44,863 – +3% annual increase
- Gap between prices and wages – 11%
- Affordability index of 81
- Las Vegas – Henderson- Paradise NV (Clark County)
– Sales price of $270,000 – +13% annual increase
– Annual wages of $48,386 – +3% annual increase
– Gap between prices and wages – 11%
– Affordability index – 82
- Midland TX (Midland County)
– Sales price of $291,000 – +16% annual increase
– Annual wages of $71,643 – +6% annual increase
– Gap between prices and wages – 11%
– Affordability index of 82
- Minneapolis – St Paul – Bloomington MN-WI (Scoll County)
– Sales price of $285,000 – +13% annual increase
– Annual wages of $48,880 – +1% annual increase
– Gap between prices and wages – 12%
– Affordability index of 82
- Ann Arbor MI (Washtenacu County)
– Sales price of $259,000 – +14% annual increase
– Annual wages of $58,409 – +2% annual increase
– Gap between prices and wages – 12%
– Affordability index of 83
- Washington – Arlington – Alexandria DC, VA, MD, WV (Stafford County)
– Sales price of $354,950 – +15% annual increase
– Annual wages of $51,389 – +2% annual increase
– Gap between prices and wages – 12%
– Affordability index of 83
- Providence – Warwick RI, MA (Kent County)
– Sales price of $245,000 – +14% annual increase
– Annual wages of $48,035 – +1% annual increase
– Gap between prices and wages – 13%
– Affordability index of 95
- Hilo Hawaii (Hawaii County)
– Sales price of $366,971 – +15% annual increase
– Annual wages of $43,342 – +2% annual increase
– Gap between prices and wages – 13%
– Affordability index of 85
- Mt. Vernon – Anacortes WA (Skagit County)
– Sales price of $338,000 – +19% annual increase
– Annual wages of $48,256 – +5% annual increase
– Gap between prices and wages – 13%
– Affordability index of 86
- Columbus OH (Delaware County)
– Sales price of $284,900 – +17% annual increase
– Annual wages of $54,444 – +2% annual increase
– Gap between prices and wages – 15%
– Affordability index of 87
- Flagstaff AZ (Coconino County)
– Sales price of $340,000 – +19%
– Annual wages of $42,653 – +2% annual increase
– Gap between prices and wages – 17%
– Affordability index of 87
