Not easy to afford a home: Ownership costs surge to 35% of average wage, highest since 2007

Homeownership expenses, including mortgage payments, property insurance and taxes, accounted for 35.1% of the average wage in the second quarter of this year, marking the highest share since 2007.

The cost surge can be attributed to rocketing inflation and 7% mortgage rates. These factors have outpaced income growth, exacerbating a shortage of housing listings and pushing the median home price to an unprecedented $360,000.

In more than a third of U.S. markets, the cost of owning a home consumed 43% of the average local wage, significantly higher than the 28% guideline for affordability.

"The latest data presents a clear challenge for homebuyers," said Rob Barber, CEO of real estate news site Attom, in a statement. "These trends often intensify during the spring buying season when buyer demand increases, but this year’s conditions are particularly tough for house hunters."

Regions in the West and Northeast, such as Orange and Alameda counties in California, and Brooklyn and Nassau County in New York, experienced the most significant declines in affordability.

Of the 589 counties analyzed, 582, or 98.8%, were deemed less affordable in the second quarter compared with their historical averages.