The article discusses the growing disparity between home prices and wage growth in the U.S., particularly in expensive states like Hawaii and California where homeowners face extreme financial strain. It details how the median home price, approximately $412,000, requires extensive work hours each month just to cover mortgage payments. In contrast, states with lower home prices, like West Virginia, demand significantly fewer workdays. The COVID-19 pandemic exacerbated these challenges, intensifying the strain on households unable to afford their homes and highlighting the implications on financial stability for many Americans.
"Home prices have significantly outpaced wage growth in recent years, widening the gap between income and housing affordability," says Hannah Jones, Realtor.com®senior economic research analyst.
"This disparity intensified during the [COVID-19] pandemic, when a surge in housing demand strained inventory, driving home prices sharply upward and increasing economic pressure on households."
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