Home ownership in the U.S. is becoming less accessible for many Americans, as increased mortgage rates and rising home prices stretch buyer affordability. To purchase a median-priced home of $431,250, a buyer would need an annual income of at least $114,000, significantly higher than six years ago. The surge in prices, partly due to low mortgage rates during the pandemic, has led to an affordability crisis. Several major cities now require incomes above $200,000, reinforcing the challenges within the housing market as sales slump significantly.
Home ownership is becoming increasingly unattainable for most Americans as rising mortgage rates and home prices exceed buyers' affordability limits.
To afford the national median home price of $431,250, a homebuyer now needs an annual income of at least $114,000, highlighting the growing affordability crisis.
The required income to afford a median-priced U.S. home crossed into six figures in May 2022 and remains above that threshold amid increasing market pressures.
In affluent metro areas, like San Francisco and San Jose, the income needed can exceed $200,000, further evidencing the widening gap in housing accessibility.
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