"The analysis assumes that a homebuyer will make a 20% down payment, finance the rest of the purchase with a 30-year fixed-rate mortgage, and that the buyer's housing costs won't exceed 30% of their gross monthly income."
"A homebuyer now needs to earn at least $114,000 a year to afford a $431,250 home â the national median listing price in April."
Homeownership is becoming less attainable for Americans as mortgage rates rise and home prices soar. A recent report indicates that an average buyer now needs an annual income of at least $114,000 to afford a median-priced home, which has increased significantly from previous years. Factors influencing this trend include elevated mortgage rates currently averaging 6.76% and a historic increase in home prices driven by demand during the pandemic. With the median household income at about $80,600, affordability challenges are evident, particularly in metropolitan areas where the required income exceeds $200,000.
Read at www.bostonherald.com
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