Challenges in Homeownership Affordability in the U.S.

SOURCE npr.org
Recent studies suggest that prospective homeowners in much of the U.S. will need to earn over $100,000 annually to afford a typical home due to drastic increases in home prices, mortgage rates, and rent growth outpacing wage gains.

Key Points

  • Prospective homeowners need to earn over $100,000 annually to afford a typical home in much of the U.S.
  • Drastic increases in home prices, mortgage rates, and rent growth have outpaced wage gains.
  • National median household income is around $74,500, significantly lower than the income required to afford a home.
  • Home prices vary depending on location, with the West and Northeast requiring higher incomes compared to the South and Midwest.