Our free access period ends on the 18th April 2022. To find out about membership to Sustain RE, please contact us.

Average earners can't afford average homes in the US

24th April 2024

US homebuyers need to earn more than $100k in order to afford the average home, a new report has found.

The median-priced home in the US now costs $332,494, meaning prospective buyers need an annual income of at least $119,769 to afford it with a 10% down payment and a mortgage at 2.5 times earnings, according to a new survey from St Louis-based Clever Real Estate.

The typical US household earns $74,755 each year, putting homes out of reach for many. A median-income family aiming to afford a median-priced home would need a 45% down payment, or mortgage rates would need to drop from the current rate of 7.2% to 4% to make a purchase work.

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.

Los Angeles (pictured above) is the least affordable city; buyers need an income of $249,471 to comfortably afford a median-priced home — nearly three times the actual median income of $87,743.

Share this article