While the absolute number of housing markets that are less affordable than their historic norms remains small, there is concern over rising home prices forcing consumers out of the market, according to RealtyTrac.
Among the 456 counties analyzed in RealtyTrac's Home Affordability Index, 43 of them, or 9%, were less affordable compared to their historic standards starting in the first quarter of 2005. That was up 10 counties, or 2%, from those that exceeded home affordability levels from the first quarter in 2015. But those numbers don't show the whole picture about housing affordability.
"While the vast majority of housing markets are still affordable by their own historic standards, home prices are floating out of reach for average wage earners in a growing number of U.S. housing markets," said Daren Blomquist, senior vice president at RealtyTrac.
"The recent drop in interest rates has helped to soften the blow of high-flying price appreciation in some markets, but the affordability equation could change quickly if interest rates trend higher and home prices continue to rise faster than wages."
The top 20 county housing markets least affordable during the first quarter compared to their historic norms included counties in Denver; New York City; Austin, Texas; Dallas; San Francisco; Omaha, Neb.; and St. Louis.
The top 20 county markets most affordable by historic standards included counties in Boston; Baltimore; Birmingham, Ala.; Providence, R.I.; and Chicago.
