US home prices far outpace Americans' paychecks. See how bad the problem is where you live
What was the typical cost of a house relative to income before the pandemic?
Before the pandemic, a house typically cost about three times a buyer's annual income. However, this ratio has risen sharply over the past few years, with median home sales prices in 2024 being about five times the median household income, making homeownership less affordable for many Americans4.
How have higher mortgage rates affected the housing market supply?
Higher mortgage rates have reduced the supply of homes in the housing market. Many homeowners who locked in record-low mortgage rates during the pandemic have been reluctant to sell, as they don't want to lose their low rates. This has limited the supply of available homes, making it difficult for would-be buyers to find options.
How much have US home prices increased since 2020?
US home prices have surged more than 47% since the start of 2020, marking the fastest pace of growth since the financial crisis over a decade ago. This rapid increase has pushed homeownership out of reach for millions of Americans, as median home sales prices are now about five times the median household income.