A report by Realtor.com reveals that aspiring homeowners must earn at least $114,000 annually to afford a home priced at the national median of $431,250, assuming a 20% down payment and a 30-year mortgage. This figure contrasts sharply with the 2023 median household income of $80,610, which is significantly lower. Over the past six years, the required income to buy a median home has surged by 70% due to rising home prices and elevated mortgage rates of 6.76%. Many potential buyers now feel homeownership is increasingly unattainable, according to analysts.
Aspiring homeowners need to earn at least $114,000 per year to buy a home listed at the national median price of $431,250, up significantly from previous years.
In just six years, the income required to afford a median home has increased by 70%, reflecting the rising mortgage rates and home prices.
Mark Hamrick, Bankrate senior economic analyst, stated that elevated mortgage rates and rising home prices have made homeownership feel out of reach for many.
Mortgage rates for 30-year fixed mortgages are currently at 6.76%, nearly double the rates from 2020 and 2021, affecting affordability.
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