according to new research from digital real estate company Zillow
You don’t say ZILLOW… YOU DONT SAY. I wonder how that could have happened, you wouldn’t happen to know do you, ZILLOW? It couldn’t have anything to do with investment firms, like… Let me check my notes here… ZILLOW buying up huge swaths of the housing stock could it now?
I love how all of these articles are about “create more supply!” instead of regulate corporations buying up all of the properties. You can watch the lack of supply correlate to when airbnb’s and rentals started to be investments for corporations. Price fixing is also a huge part of it. If rentals are unnaturally high, how are people supposed to save to buy?
https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent
https://mynorthwest.com/3942070/checks-out-washington-households-price-fixing-settlement/
Cost of building a house has also like doubled. Makes it hard to build even more homes for a good price if you wanted to.
I was making like 50k in 2020. Now I’m making like 67k. FML.
And if you live in California, good luck. $106k/yr ain’t buying a home here.
I think there are MANY places it’s not buying a typical home. IANARealEstateExpert but I would bet there are specific areas of the country with a very depressed housing market that are bringing the average down by a bit.
Or almost anywhere in New England that’s not overrun with meth and violence. And, even then sometimes…
Compare that to 1960, when mi9nimum wage was $1.00/hour and the average house was $11,000.00.
16% inflation
There are plenty of great affordable houses in vibrant, economically prosperous, almost-urban communities out there. Like this one https://maps.app.goo.gl/r42MN8wXEYVNwqzVA . So maybe it’ll need a fix or two, but you’ll own the libs by not having any homeless or drug users around, unless that describes you. You’ll enjoy the several functioning roads (in season) and a well-maintained railroad - hopping a freight has never been more convenient. Drop by anytime, but don’t delay, this one won’t last!
This is the best summary I could come up with:
Now, Americans must earn roughly $106,500 in order to comfortably afford a typical home, a significant increase from the $59,000 annual household income that put homeownership within reach for families in 2020, according to new research from digital real estate company Zillow.
Home ownership is commonly considered affordable if a buyer spends no more than 30% of their pre-tax income on housing costs, including mortgage payments, which at the time of the study, was around 6.6%.
Data from real estate investing platform Arrived shows that not even higher income earners — defined as those in the top 30% — can comfortably afford to buy a home in the larger U.S. metro areas, regardless of their age.
“Housing costs have soared over the past four years as drastic hikes in home prices, mortgage rates and rent growth far outpaced wage gains,” said Orphe Divounguy, a senior economist at Zillow in a note on the report.
“Mortgage rates easing down has helped some, but the key to improving affordability long term is to build more homes,” Divounguy said.
Some of the more affordable cities in which to plant roots include Pittsburgh, where an income of roughly $58,200 is sufficient to buy a home without breaking the bank.
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