10 Crucial Key Points on U.S. Home Affordability
Record Income Needed: To buy an average-priced U.S. home, you now need $114,627, a new high.
2022 Median Income: In 2022, the typical American household earned around $75,000.
Income Increase: The income required to buy a home has risen by 15% in a year and over 50% since the start of the pandemic.
Rising Mortgage Rates: Higher rates were expected to slow demand and lower home prices, but it's not happening.
Limited Inventory: Low mortgage rates have kept inventory low, leading to higher prices.
Wage Increase: While average hourly wages increased by about 5% in the last year, they haven't kept up with home affordability.
Housing Alternatives: Consider condos or townhouses as they are more affordable than single-family homes.
Move to Suburbs: Moving to a more affordable suburb can ease the financial burden of buying a home.
Growing Demand: The demand for homes continues to rise, even with higher costs.
Challenges for Buyers: It's a challenging time for prospective homebuyers in the U.S.