Sky-High Home Prices: Buyers Need 6-Figure Salaries to Afford Median Homes
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The average homebuyer now needs to earn $114,627 per year to afford a median-priced home, according to Redfin - $40K more than the median household income.
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Monthly mortgage payments reached an all-time high of over $2,800 per month, leaving many homeowners "house-poor."
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Housing affordability is the worst it's been this century due to high mortgage rates (over 7%) and rising home prices (up 5% year-to-date).
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Renters are also affected, with rents hitting all-time highs in cities like NYC where renters need to earn over $176K to afford median rent.
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Inventory remains low as homeowners hold onto low rates, propping up prices despite higher mortgage rates that should cool demand.