1 minute readAccording to ATTOM’s Q2 2021 home affordability report, home-price appreciation is outpacing annualized wage growth in 72 percent of the U.S. counties analyzed, with the largest including Los Angeles County, CA; Harris County (Houston), TX; Maricopa County (Phoenix), AZ; San Diego County, CA, and Orange County, CA (outside Los Angeles).
The report notes that the average annualized wage growth is outpacing home-price appreciation in Q2 2021 in just 28 percent of the U.S. counties included in the analysis, including Cook County (Chicago), IL; Kings County (Brooklyn), NY; Bexar County (San Antonio), TX; Santa Clara County (San Jose), CA, and Wayne County (Detroit), MI.
Monthly payment power has been the secret weapon of the entry-level and lower-price-tier of the housing market for five years now, and this potent ingredient fuels most price-and-pacing models among builders for years to come.
This is why all eyes are glued on how the Federal Reserve acts with respect to the “transitory nature” of inflation, and how that may directly impact one of homebuilders critical points of leverage in meeting structural demand.
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