The Cost of an Average US Home Is About $40,000 Higher Than Average Income

The Cost of an Average US Home Is About $40,000 Higher Than Average Income

The Cost of an Average US Home , Is About $40,000 Higher , Than Average Income .

According to a recent Redfin report, homebuyers in the U.S. need to earn approximately $115,000 a year in order to afford an average home.

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Redfin acknowledges that affordability is a major issue which U.S. homebuyers face as prices remain persistently high, 'Newsweek' reports.

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According to the real estate company, "sky-high mortgage rates and still-rising home prices have made it harder than ever" for U.S. buyers.

Zillow data suggests that the average U.S. home value is $348,539, up 1.1% compared to the same time in 2022.

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At the same time, mortgage rates have remained high, with the average rate on a 30-year fixed mortgage hitting 7.57%, the highest it's been in over two decades.

In a homebuyer's ideal world, rising mortgage rates would push demand and home prices down enough to make up for high interest payments.

That's not what's happening now, Chen Zhao, Redfin Economics Research Lead, via 'Newsweek'.

Although new listings are ticking up slightly, inventory is still near record lows as homeowners hang on to their low mortgage rates— and that's propping up prices, Chen Zhao, Redfin Economics Research Lead, via 'Newsweek'.

Although new listings are ticking up slightly, inventory is still near record lows as homeowners hang on to their low mortgage rates— and that's propping up prices, Chen Zhao, Redfin Economics Research Lead, via 'Newsweek'.

'Newsweek' reports that the $114,627 annual income needed to purchase a median-price home is about $40,000 more than an average American household makes.

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Buyers—particularly first-timers who are committed to getting into a home now—should think outside the box, Chen Zhao, Redfin Economics Research Lead, via 'Newsweek'.

Consider a condo or townhouse, which are less expensive than a single-family home, and/or consider moving to a more affordable part of the country, or a more affordable suburb, Chen Zhao, Redfin Economics Research Lead, via 'Newsweek'