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Yahoo
6 hours ago
- Business
- Yahoo
You need to earn 70% more now than 6 years ago to afford a median US home — but there's still hope for buyers
Think owning a home is still the American Dream? Well, you now need a six-figure income just to afford the mid-tier of that dream. According to the latest April Housing Trends Report, the income needed to buy a median-priced home in the U.S. has soared to $114,000 — a staggering 70.1% jump from just $67,000 six years ago. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) For context, Americans' actual median household income was $80,610 in 2023, according to the U.S. Census Bureau. In other words, most Americans can't afford most homes on the market. In fact, 57% of households can't even buy a $300,000 home, according to the National Association of Home Builders (NAHB). It might be fair to call this situation a crisis. Here's how we got to this point and what comes next. A key factor driving the housing crisis is a lack of supply. Property developers across the country have chronically underbuilt homes since the Great Recession of 2008, according to the U.S. Chamber of Commerce. As of 2025, the market faces an estimated shortage of 4.5 million homes. A lack of supply encourages buyers' bidding wars, which drive prices up. That's what we've seen over the past six years. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Unfortunately, there are signs that this crisis could get worse. In April 2025, construction began on 1.36 million new homes, down 1.7% compared to the same time last year, according to the Census Bureau. The NAHB points to the rise of interest rates as an exacerbatubg factor. High interest rates not only make it more difficult for construction companies to finance projects but for homebuyers to afford mortgages. However, it's not all doom-and-gloom for potential buyers. report found a silver lining emerging in the market. According to Realtor's analysis, some homeowners in certain parts of the country are 'meeting buyers in the middle.' In other words, they're willing to take a price cut on their home listing. Housing inventory is starting to build in several high-cost markets, including San Diego, San Jose, and Washington, D.C. These cities have also seen sharp increases in the number of homes listed on the market — rising by 70.1%, 67.6%, and 69.3% respectively since last year. As of April 2025, active listings were up 30.6% year-over-year across the country. That's a huge surge of inventory that could give buyers in some markets more bargaining power. In fact, some buyers are already snapping up bargains with 18% of listings seeing price reductions in April. The current housing market is far from ideal. But if you and your family earn an income high enough to qualify for a mortgage, this could be a good time to seek out deals and buy. Keep an eye on price trends and inventory levels in your local market and speak to an experienced realtor to find your dream home at a reasonable price. Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
21-05-2025
- Business
- Yahoo
Looking to purchase a home and live in these areas? They require the highest income
Housing affordability is a major consideration when purchasing a home that often varies based on the market in which homebuyers are looking to purchase. In its "April Housing Trends Report," identified the markets in the U.S. in which buyers need to make the most money to be able to buy a median-priced home. While five of the metro areas in the top 10 could be found in California, locales in several other states also demanded big incomes, according to the real estate marketplace. Housing Getting More Affordable For Middle-income Earners But Supply Issues Remain Homebuyers in each of the 10 metro areas that ranked among areas "with the highest required incomes to afford a home" all needed to take home at least six figures, with the San-Jose-Sunnyvale-Santa Clara, California market taking the top spot. In April, homes in the San Jose-Sunnyvale-Santa Clara market had median prices of nearly $1.4 million, according to It pegged the income needed to buy such a home at just over $370,000, more than any other market it looked at. Read On The Fox Business App This housing market, which is ranked No. 2, is also located in Northern California. Homebuyers needed to pocket about $263,000 a year to bear the expense of the market's $995,000 median listing price in April, the report found. Of the metros in the top 10 for highest required income, the Los Angeles-Long Beach-Anaheim market saw the biggest jump – 86% – from 2019 to a take-home of nearly $315,900, reported. The median home there cost $1.195 million in April. San Diego-Chula Vista-Carlsbad ranked as the market requiring the third-highest income from homebuyers, with over $258,900 in income needed for the median $979,500, per the report. Compared to a year ago, the median price of a home in the area in April dropped 6.7%. Tacoma is located south of Seattle, while Bellevue sits to the east of the city. To purchase a median-priced $782,225 home in this market, homebuyers had to make nearly $206,800, according to The Boston-Cambridge-Newton market saw its median listing price rise 0.9% year-over-year to hit $878,000 in April, per the report. Getting a home there takes a roughly $232,100 income. Boston, home to over 673,000 people, posted a 20.1% year-over-year jump in newly-listed homes in April, also found. Affording the median for a home in and around the Big Apple and across the Hudson River in New Jersey necessitated an income of almost $208,700 in April, the report indicated. The market's required income has jumped 69.4% since April 2019. America's Housing Crisis: Ceo Says There Is A Way To Solve It Denver serves as the capital of the Centennial State. Its housing market, and nearby Aurora and Centennial, had a median asking price of $599,450, meaning homebuyers there would have to make over $158,400 to be financially capable of getting approval to purchase a residence, according to found the market, which includes the Golden State's capital, has a median $633,570 price tag and the income required for such properties to be nearly $167,500. Homes typically sat on the market for 38 days there in April. The District of Columbia, Arlington and Alexandria are among some of the cities that fall within the so-called "DMV" (District of Columbia, Maryland, Virginia) area encompassing the nation's capital. The Washington-Arlington-Alexandria market, boasting homes listed at a median of nearly $623,000, requires earnings of about $164,680, the report said. Dc Home Inventory Skyrockets By 47% Following Trump Admin's Federal Layoffs Nationwide, homebuyers had to pocket incomes of $114,000 to be able to be financially capable of buying a home, according to It used a 30-year fixed mortgage, a 20% down payment and maximum spending of 30% of gross monthly income to calculate that figure. Homes up for sale across the U.S. carried a median price tag of $431,250 in April, according to its data. The report said the income needed to buy a median home in the U.S. has jumped 70.1% in the last six years compared to six years. Click Here To Read More On Fox Business In September of last year, the U.S. Census Bureau pegged the real median household income in the U.S. at $80, article source: Looking to purchase a home and live in these areas? They require the highest income Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
