As home prices surge, salaries are left behind

As home prices surge, salaries are left behind…

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In 15 cities across the country, the average monthly mortgage payment has surpassed the average monthly wages.  For example, Tucson, Arizona the median income grew by 27% while the average monthly mortgage payment grew by 126%, and in Miami the median income grew by 30% while the average monthly mortgage payment grew 117.2%.  The sunbelt and southwest have been the first to seen many of these jumps in mortgage prices as it spreads throughout the country.   Currently, the federal reserve puts the median home sale price at $412,300, much more than most American’s can afford and a far cry from the $250,000 price tag many believe is a reasonable price for a single family home.  While some have chosen to rent in an effort to offset or avoid the mortgage costs, they’re finding rental prices to be almost on par with monthly mortgage payments.  Leaving many without options for suitable housing. When surveyed by NewHomesMate, 50% of respondents doubted they would ever be able to afford their ideal home.  The average American earns $40,00 less than what is needed to qualify for a typical home loan.  The average income needed to qualify is roughly $115,00 – $120,000.

Some experts only expect mortgage rates to drop a small amount as the Fed tries to balance cuts and the federal deficit.

 

https://www.bizjournals.com/cincinnati/news/2024/08/20/home-prices-surging-faster-than-incomes.html

 

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