U.S. home prices have far outpaced paychecks. See what it looks like where you live
How much have U.S. home prices increased since early 2020?
U.S. home prices have increased by 47% since early 2020, significantly outpacing incomes. This rapid growth has made homeownership unaffordable for many Americans, with median home sales prices reaching about five times the median household income. The combination of high prices and high mortgage rates has exacerbated the issue, leaving homeownership attainable only for the most advantaged households.
What are the all-in monthly costs of the median-priced U.S. home now?
The all-in monthly costs of the median-priced U.S. home are the highest since records began more than 30 years ago, according to Harvard University's Joint Center for Housing Studies. This is due to a combination of high prices and high mortgage rates, which have left homeownership unattainable for all but the most advantaged households. In nearly half of metro areas, buyers must make more than $100,000 to afford a median-priced home, a significant increase from 2021.
How many metro areas require a $100,000 income to afford a median-priced home?
In nearly half of the metro areas in the U.S., buyers must make more than $100,000 to afford a median-priced home. This is a significant increase compared to 2021, when only 11% of markets required a six-figure income to afford a typical home. The rise in home prices and high mortgage rates have made homeownership unattainable for many households, particularly in areas with high living costs3.