US EditionBuying a home? You’ll need a $17K raise, Zillow finds
- Zillow analysis finds median earners need a $17,670 raise to afford a typical U.S. home, despite saving $73,000 for a down payment.
- Driven by soaring home values, rising mortgage rates, and surging insurance premiums, the financial bar for homeownership has significantly increased in recent years.
- Zillow finds median earners need a $17,670 raise to buy a typical U.S. home, with affordability limited to 11 markets, down from 39 five years ago, and over half of buyers using multiple funding sources.
- Rising homeownership costs have boosted demand for single-family rentals, while inventory increases lead sellers to negotiate prices, Zillow reports.
- Projections indicate homeownership costs will remain high through 2028, with affordability unlikely to return soon, as JBREC researchers estimate ownership will stay 91-95% above renting costs.
8 Articles
8 Articles
Buyers need a $17,000 raise to afford a home
Even with a $73,000 down payment, median earners would require a pay increase to afford the monthly mortgage A median-income family would need a $17,670 raise to afford the mortgage payments on a typical U.S. home. In four California markets, median earners would require a six-figure raise to afford the typical home. Currently, median earners can afford the typical home in just 11 major markets, down from 39 markets five years ago. SEATTLE, Jun…
In Hungary, where the economy stands for more than a quarter, and the reference profit is 6.5% of last year's salary, the demand for housing declines. The sellers are forced in an even greater number to lower prices. The trend could be at first, appreciation of analysts. In Poland, the central bank gave a boost to the real estate market in May, when it won the reference profit from 5.75% to 5.25%, i.e. with a great step, but since then the activ…
Inventory Influx Boosts Buyer-Friendly Spring - The MortgagePoint
"Affordability remains a steep hill to climb, especially for first-time buyers," said Kara Ng, Senior Economist at Zillow. "While the financial bar has gotten higher, we're also in the middle of the most buyer-friendly spring since before the pandemic for those who can make the finances work."
Money
South Florida ReporterTo Afford a Typical House, Americans Now Need to Earn Six Figures
It now takes a salary of around $99,800 to buy a typical home, which means a household earning the U.S. median income of $82,200 would need a raise of $17,670 to make a purchase. Even with enough savings for a 20% down payment on a home at the median U.S. home price ($367,969), today’s high mortgage rates would push a buyer’s monthly payment to an uncomfortable level for anyone earning less than six figures, according to a Zillow report released…
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