Home Affordability Worsens in Hidalgo and Cameron Counties as Prices Surge

By Arnoldo Mata

Edinburg, TX, July 19, 2024 — Home affordability in Hidalgo and Cameron counties declined significantly in the second quarter of 2024. Median home prices in the Rio Grande Valley surged, aligning with national trends of rising home costs and high mortgage rates.

According to the latest U.S. Home Affordability Report from ATTOM, a leading curator of land, property and real estate data, major home ownership expenses nationwide now consume 35.1% of the average wage, the highest since 2007. This increase is driven by the national median home price reaching a record $360,000, coupled with mortgage rates around 7%.

In Hidalgo County, the median home price increased by 2.2%, making home ownership expenses consume 35.9% of average local wages. Similarly, in Cameron County, median home prices rose by 3.2%, with ownership costs taking up 34.6% of local wages.

In contrast, wages increased more than home prices in Harris County (Houston), Dallas County (Dallas), Tarrant County (Fort Worth), and Bexar County (San Antonio). In Tarrant County, home prices actually went down 1.5%.

“The latest affordability data presents a clear challenge for home buyers,” said Rob Barber, CEO of ATTOM. “As home prices rise and mortgage rates remain high, affordability worsens, especially during the Spring buying season.”

The report analyzed 589 counties and found that 99% of them are less affordable than their historical averages. Among the largest counties, Los Angeles, Cook, Maricopa, San Diego, and Orange counties are the least affordable.

As home prices and interest rates rise, the portion of wages needed for home ownership continues to increase, making it difficult for average wage earners to afford homes. For more information, visit the full ATTOM report.

Report Methodology
The ATTOM U.S. Home Affordability Index analyzed median home prices derived from publicly recorded sales deed data collected by ATTOM and average wage data from the U.S. Bureau of Labor Statistics in 589 U.S. counties with a combined population of 260.7 million during the second quarter of 2024. The affordability index is based on the percentage of average wages needed to pay for major expenses on a median-priced home with a 30-year fixed-rate mortgage and a 20 percent down payment. Those expenses include property taxes, home insurance, mortgage payments and mortgage insurance. Average 30-year fixed interest rates from the Freddie Mac Primary Mortgage MarketSurvey were used to calculate monthly house payments.

The report determined affordability for average wage earners by calculating the amount of income needed for major home-ownership expenses on median-priced homes, assuming a loan of 80 percent of the purchase price and a 28 percent maximum “front-end” debt-to-income ratio. For example, affording the nationwide median home price of $360,000 in the second quarter of 2024 required an annual wage of $90,598. That was based on a $72,000 down payment, a $288,000 loan and monthly expenses not exceeding the 28 percent barrier — meaning wage earners would not be spending more than 28 percent of their pay on mortgage payments, property taxes and insurance. That required income was more than the $72,358 average wage nationwide, based on the most recent average weekly wage data available from the Bureau of Labor Statistics, making a median-priced home nationwide unaffordable for average workers.