Home prices continued to rise faster than wages in the past year in Chattanooga, but the Scenic City remains a more affordable housing market than most U.S. cities, according to a new Home Affordability Report prepared today by ATTOM Data Solutions.
In the fourth quarter, the median price of homes in Chattanooga rose by 5.6% over the past year to $190,000. That outpaced the average 1.6% gain in annual wages for Chattanooga workers in the past year. In the fourth quarter, median wages in Chattanooga are estimated at $50,996.
Aided by lower mortgage rates and a favorable economy, the median income worker in Chattanooga was still able to buy a median priced home by spending about 26.5% of his or her income on housing expenses. That was better than in more than two thirds of all U.S. metro areas, including Nashville and Knoxville, where median homes were generally not affordable for the typical home buyer.
“Home prices rose across the country by 9% year-over-year in the fourth quarter of 2019, and the typical home remained a financial stretch for average wage earners,” said Todd Teta, chief product officer with ATTOM Data Solutions, which compiled the data for the new study.
“However, homes were actually a bit more affordable because of declining mortgage rates combined with rising pay to overcome the continued price run-up. As long as people are earning more money and shelling out less to pay off home loans, the market should remain strong with prices continuing to rise, at least in the near term.”