High Home Prices and Mortgage Rates Require 50% More Income for Home Buyers Compared to Pre-Pandemic Levels

U.S. home buyers face tough conditions with median home prices around $412,000 and 30-year mortgage rates near 8%.

At 8% rates, buying a median priced home requires an income of $120,773 to keep monthly costs affordable.

Rates are expected to fall to 7% by early 2024, reducing required income to $111,747.

At 6% rates by end of 2024, required income would be $103,078.

Home buyers today need 50% more income compared to pre-pandemic to buy a median priced home due to higher rates.