The median home is unaffordable for the average American in 44 of the 50 largest U.S. metros and 46 of the 50 states.
ST. LOUIS, Miss., April 23, 2024 /PRNewswire/ — The median-priced home in the U.S. now costs a staggering $332,494, meaning prospective buyers need an annual income of at least $119,769 to afford it with a 10% down payment, according to a new survey from Clever Real Estate, a St. Louis-based real estate company.
That’s about $45,000 more than the typical household earns annually ($74,755). Even with a 20% down payment, home buyers would need to earn at least $98,202, still well above the typical salary.
The last year that the median buyer put down 20% was 1989, according to data from the National Association of Realtors (NAR). Today, the median buyer puts down just 15% of a home’s purchase price.
The median U.S. income earner ($74,755) with 10% down could only afford a home that costs $207,529 — 38% less than the current median-priced home.
A median-income family aiming to afford a median-priced home would need a hefty 45% down payment, or mortgage rates would need to drop from the current rate of 7.2% to 4% to make it work.
Even with a savings rate of $1,000 each month, it would take a household five and a half years to amass the $66,500 needed for a 20% down payment on a home priced at the median of $332,494.
As it stands, 61% of Americans find themselves priced out of the market even with a 20% down payment.
The median home is affordable for median earners in just four states (West Virginia, Ohio, Iowa, and Indiana) and six of the 50 largest metro areas:
- Pittsburgh, PA
- Cleveland, OH
- St. Louis, MO
- Memphis, TN
- Indianapolis, IN
- Birmingham, AL
Unsurprisingly, Los Angeles is the least affordable city, where buyers need an income of a whopping $249,471 to comfortably afford a median-priced home — nearly three times the actual median income of $87,743.
Read the full report at: http://www.listwithclever.com/research/how-much-house-can-i-afford-2024
About Clever Real Estate
Clever Real Estate is a technology company that produces educational real estate content reaching over 10 million readers annually, and its nationwide agent matching service has a 5.0-star Trustpilot rating across 2,300+ customer reviews. Since launching in 2017, Clever has reached $8.5 billion in real estate sold, matched 100,000+ customers with realtors, and saved consumers over $160 million on commission fees. Clever’s network spans 19,000 agents across all 50 states.
Please contact Nicole Lehman at
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CONTACT:
Nicole Lehman
Clever Real Estate
376566@email4pr.com
724-719-0406
SOURCE Clever Real Estate
