It now takes nearly 41% of the median household’s monthly income to cover the principal and interest payments on a median-priced home, according to research from Intercontinental Exchange. It now takes nearly 41% of the median household’s monthly income to cover the principal and interest payments on a median-priced home, according tofrom Intercontinental Exchange. It comes at a time of uncomfortably high prices after a bout with the worst inflation in a generation.
“The situation was already dire,” Andy Walden, ICE’s vice president of enterprise research said in the report, adding that the recent jump in mortgage rates has made it even worse.This problem is pushing the American dream further from reach for some prospective first-time homebuyers. They’ve been forced to rent instead, delaying their ability to build wealth through homeownership.
ICE notes that the last time housing affordability was this bad, the average home cost about 3.5 times median income. Today, that price-to-income ratio is much worse, at nearly six to one.Cal State University workers call for strike Nov. 14Fire destroys massive, historic north hangar at shuttered Tustin airfieldRams, QB Carson Wentz agree to free-agent deal