The median-priced home in May costs $440,000, requiring the average American household to spend 44.6% of its income, surpassing the recommended 30% for housing. Only three major metropolitan areas remain affordable for median earners within the 30% threshold. Current housing affordability issues stem from rising home prices and stagnant wage growth, making homebuying financially challenging for many households. The Department of Housing and Urban Development's 30% rule, established to ensure basic living expenses can be met, has become unrealistic in today's housing market as prices outpace wages.
The average American must allocate 44.6% of their income to purchase a median-priced home, far exceeding the typical 30% threshold for housing costs.
In only three major metro areas can median earners afford homes without exceeding the 30% benchmark, reflecting the growing financial strain on household budgets.
Housing costs are rising at a rate that exceeds wage growth, meaning many Americans face significant financial pressure when attempting to buy a home today.
Statistics indicate that the typical American household needs a spending adjustment as home prices and mortgage rates remain high in today's market.
Collection
[
|
...
]