Homeownership is increasingly out of reach for many Americans as rising mortgage rates and home prices continue to strain budgets. As of April, buyers need an annual income of at least $114,000 for a median-price home of $431,250, a stark increase from six years ago. The current economic landscape reflects a historic sales slump in the housing market, worsened by soaring prices and climbing interest rates. This challenging environment highlights significant affordability issues in major metropolitan areas, with income requirements exceeding $200,000 in cities like San Francisco and New York.
The annual income required to afford a median-priced U.S. home first crossed into the six figures in May 2022 and hasn't dropped below that level since.
Homebuyers need to earn $47,000 more a year to afford a home than they would have just six years ago, when the median listing was $314,950.
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