Homebuyers Face Steep Income Requirements Amid Rising Housing Costs

A new report reveals that U.S. homebuyers now need to earn significantly more to afford a median-priced home, with some areas requiring incomes as high as $270,000.

• Homebuyers need to earn over $106,000 annually to afford an average home in the U.S., an 80% increase from 2020.
• In regions like Rhode Island, incomes need to be near $300,000 to purchase a median-priced house.
• Mortgage rates have risen to near 7%, with the national average home price increasing 29% since the pandemic.
• Creative financing methods, including gifts or loans from family and friends, are being used by first-time buyers.
• Experts warn of a continued housing affordability crisis without significant changes to zoning and housing supply.

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