Homes are unaffordable in 80% of larger U.S. counties, analysis finds [Video]

A growing swath of the U.S is unaffordable for people looking to buy a home, new data shows.

Between April and June, homeowners in 80% of 589 counties were spending more than 28% of their wages on housing costs, including mortgage payments, property taxes and homeowners insurance, according to a report from real estate analytics firm ATTOM. Home prices have hit record highs this year amid a shortage of affordable properties and mortgage rates hovering around 7%, more than twice their level in 2021.

Homeowners are typically advised to spend no more 28% of their wages on housing, and anything above that level is considered unaffordable. But ATTOM found that the average homeowner, with a typical annual income of $72,358, pays $2,114 a month for housing — that means about 35% of their pay goes to housing costs.

In more than a third of the markets ATTOM examined, homeowners were spending at least 43% of their wages on housing, a level the firm …