Home Affordability Plummets as Prices Rise Twice as Fast as Incomes
• Home prices have risen 42% since 2020 while incomes have increased just 23%, meaning buyers now need to earn 80% more to afford a typical home.
• The monthly mortgage payment on a median-priced home has nearly doubled from 2020, rising from $1,121 to $2,200 per month currently.
• The income needed to comfortably afford a typical home is now over $100k, pricing many potential buyers out of the market.
• Lower mortgage rates and home prices in 2020 made buying more affordable compared to today’s housing market.
• Most major metro areas are now unaffordable for median income households, with only Pittsburgh, St. Louis, and Detroit within reach for average buyers.