Homeownership is becoming increasingly unaffordable for most Americans—especially along the country’s coasts.
According to data from Realtor.com, a median-priced home went for around $385,000 until early 2022. To afford that home, buyers needed a household income of about $79,000, assuming 30% of their income would be allocated toward housing costs. The median household income in 2022 was around $75,000, so homeownership was in reach for many.
But mortgage interest rate hikes have changed that picture. By June 2024, the required income for homeownership had climbed to $120,000, but the median household income was around $84,000. The minimum required income for a median-priced home is now more than 40% higher than the actual median income.
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