American households need to earn $114,000 annually to afford a median-priced home, according to new data report from Realtor.com.
Since pre-pandemic 2019, the income required to afford the median-priced home has jumped 70.1% from $67,000. Five of the 10 markets with the highest required incomes to afford a home are in California, led by the San Jose metro area ($370,069), the San Francisco metro area ($263,023), and the Los Angeles metro area ($315,892).
“Even with today’s affordability hurdles, meaningful changes in the market could give buyers a better shot at finding a home,” said Danielle Hale, chief economist at Realtor.com. “The number of homes for sale is rising in many markets, giving shoppers more choices than they’ve had in years. Sellers are becoming more flexible on pricing, underscored by the price reductions we’re seeing, and while higher mortgage rates are certainly weighing on demand, the silver lining is that the market is starting to rebalance. This could create opportunities for buyers who are prepared.”
If the U.S. wants home affordability, then large investor groups should be barred from buying homes when affordability falls below set levels in distinct regions.
I read that between 2019 and 2023, a staggering 28% of homes for sale were purchased by large investor groups (Zillow being just one of them). That huge influx of mega investor dollars drove prices far higher than they would have been otherwise.
In some cases, new subdivisions were entirely bought up by mega-investor groups.
This appears to be an effort to drive many buyers into the rental market, and the general trends seems a concerted attempt to turn American into a renter class society, with the uber rich gaining more real estate, including homes, businesses, and farms.
Look at the small farmer situation where big Corporations drive policies that harm small farmers while empowering large mega farm corporations.
Until Americans admit to the these mega wealthy intrusions that are making affordability difficult for many Americans, no amount of deregulation will change the trajectory.
Livable wages set within different regions of the country would also help to make affordability easier. In California, many very expensive areas should have higher minimum wages IF the workers can prove that they live within a 30 to 40 mile commute of their job site. This would help to encourage local workers and less traffic, which saves tax dollars on road maintenance and widening.
Drop the prices. Cape Coral’s average median household income is 85k. If they don’t drop the prices they’re not selling
Sounds like some people need to work two jobs for a few years and save money.