According to a report by real estate data provider ATTOM, typical homeownership costs in the second quarter of this year accounted for the largest proportion of wages since 2007.
During this period, major expenses related to median-priced homes consumed 35.1% of the average national wage, exceeding previous quarters and surpassing common lending guidelines recommended by ATTOM.
Overall, monthly homeownership costs, encompassing mortgage payments, homeowner insurance, mortgage insurance, and property taxes, averaged $2,114.
The surge in costs has been driven by elevated home prices, which escalated during the pandemic due to heightened demand. Additionally, high mortgage rates have compounded affordability challenges by increasing the expense of home loans, thereby dissuading potential sellers from listing their properties.
Consequently, these heightened costs have contributed to a notable decline in pending home sales, marking lows not witnessed in over two decades.
