Compared to 2020, Americans need to earn significantly more annually to afford a median-priced home in every state and Washington, D.C.
If you want to buy a house this year, it’ll require a larger slice of your income.
It’s a harsh reality that Allison Dunbar, a product development coordinator and aspiring homeowner in Pittsburgh, quickly realized while speaking to her oldest brother about his homebuying experience in the same city a few years ago.
“He bought his house in Pittsburgh in 2018, and he got a very nice house in a nice area that fits his family now for $20,000 under asking,” Dunbar says. “That is not a thing in Pittsburgh anymore.”
A combination of high mortgage rates, rising home prices and low housing inventory over the last two years is pushing homeownership further out of reach for would-be homeowners, especially first-timers. To afford a median-priced home of $402,343, Americans need an annual income of $110,871, according to a new Bankrate analysis. That’s nearly a 50 percent increase in just the last four years.
Read the full article on Bankrate