The required income for U.S. families to buy a median-priced home has skyrocketed by 70% in the past six years, now reaching about $114,000 annually. This increase of $47,000 since 2019 stems from rising home prices and high mortgage rates. Although the required income has stabilized over the past year, it remains significantly above the typical household income of $80,600, illustrating ongoing affordability challenges. Some cities, particularly Memphis, face even steeper increases, complicating homeownership prospects for many families.
The income needed for a family to buy a typical home in the U.S. has surged by an eye-popping 70% over the past six years, marking significant affordability challenges.
To purchase a house at the national median list price of $431,250 in April, a household needed to earn about $114,000 annually, an increase of nearly $47,000 since spring 2019.
While the income needed to purchase a home has leveled off nationally, it remains significantly higher than before the pandemic, highlighting ongoing challenges of housing affordability.
In specific cities, the required income has significantly surged, with Memphis seeing a staggering 94.8% increase in required annual income over the last six years.
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