"Meanwhile, there's a $30,000 gap between what the typical U.S. household makes and what it needs to afford a median price home, according to the latest Bankrate analysis. The typical U.S. household earns about $80,000 per year, according to U.S. Census Bureau data, but hopeful homebuyers need a $113,000 salary to afford a median-priced home. A median-priced home in the U.S. is $447,035, according to an August Redfin report."
""When only a sliver of the market is affordable to the typical household, homeownership starts to feel less like a milestone and more like a luxury," said Bankrate data analyst Alex Gailey. "It's no surprise that one in six aspiring homeowners have walked away in the last five years." Another Bankrate analysis from September shows one in six aspiring homeowners had completely given up on finding a home to buy."
""For many families, the challenge isn't just high home prices and elevated mortgage rates," Gailey said. "It's that housing shortages across the country have left them with far fewer homes they can afford." However, there are a few U.S. cities where affordable homes are at least a little easier to find. That includes Pittsburgh, St. Louis, Baltimore, Detroit, and Birmingham, Ala."
Home prices and mortgage rates remain elevated since the pandemic housing boom while wages have not kept up with inflation. More than 75% of homes on the market are unaffordable to the typical household. The typical household earns about $80,000 annually but needs roughly $113,000 to afford a median-priced home, creating a $30,000 gap. The median-priced home in the U.S. costs about $447,035. In high-cost metros like Los Angeles, San Diego, and Boston required incomes are much higher. Housing shortages have reduced the supply of affordable listings, prompting about one in six aspiring buyers to give up.
Read at Fortune
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