Homebuyers Need To Earn $114,627 To Afford A Median-Priced Home
WRE News October 20, 2023
Buyer
WRE News October 20, 2023
Buyer
A homebuyer needs to earn $114,627 in order to afford the purchase of a median-priced home, according to data from Redfin (NASDAQ:RDFN). This up 15% ($15,285) from one year ago and up by more than 50% since the start of the pandemic in March 2020.
The current income level for homebuying is the highest on record. The typical American household earned about $75,000.
On a regional level, Bay Area buyers seeking homes in San Francisco and San Jose must earn $400,000, both up nearly 25% year-over-year. At the other end of the spectrum, Detroit homebuyers must earn about $52,000 to afford the area’s median-priced home, up 19% from a year ago.
Furthermore, the typical homebuyer’s monthly mortgage payment is $2,866, up 20% from $2,395 one year ago and a new all-time high.
“Buyers—particularly first-timers who are committed to getting into a home now—should think outside the box,” said Redfin Economics Research Lead Chen Zhao. “Consider a condo or townhouse, which are less expensive than a single-family home, and/or consider moving to a more affordable part of the country, or a more affordable suburb.”
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