According to the latest report from Redfin, the average household income falls about $30,000 short of what’s necessary to afford a median-priced home comfortably. Zillow published similar research that highlight the stark unaffordability of housing.
Today, the income needed to afford a home comfortably soars to roughly $106,500, surpassing the average U.S. household income of about $81,000. Buyers’ current median monthly housing costs are roughly $2,838, a 74% increase from February 2021, during historically low mortgage rates. To purchase the median-priced home in the U.S. in February, valued at $412,778, buyers were required to have an annual income of $113,520. This figure is 35% higher than the median household income of $84,072.Email us: share@abc15.
According to the USDA, between 2019 and 2023, the Consumer Price Index for all food items surged by 25.0 percent, while transportation costs experienced a 27.1 percent increase.In February, San Antonio’s prospective homebuyers saw affordability in their area increase by only 1%, marking the smallest rise among major U.S. cities, says Redfin. Marginal increases were also seen in Detroit , Austin, TX , Fort Worth, TX , and San Francisco .
Other metros where homebuyers making less than $100,000 can afford the typical home include San Antonio, Texas, Virginia Beach, and Kansas City, Missouri. Midwesterners in Indianapolis, Indiana, Cincinnati, Ohio, Columbus, Ohio, and Milwaukee, Wisconsin also fare better than other buyers.In response to rising housing costs in many cities, Americans relocate to more affordable locations.