Maybe you didn’t know just how unaffordable the housing market has gotten. Americans now need to earn more than six figures in order to purchase a median-priced home, according to calculations in a new Redfin report. That’s a lot more than the average American makes, to say the least.
A prospective homebuyer needs to make $114,627 to afford a home, the brokerage and real-estate research firm says. That’s a 15% year-over-year increase and the highest annual income on record to buy a home. This is a problem considering that median household income was $74,580 in 2022—about $40,000 shy of what’s needed to meet Redfin's target. (Redfin’s reporting takes into account income, average monthly mortgage payments, and current mortgage rates.)
