Apr 27, 2022 - Economy

Where buying a house is increasingly out of reach for locals

Increase in income needed to afford median-priced home
Data: Redfin; Note: Assumes 5% down and mortgage payments of 30% of income; Chart: Sara Wise/Axios

Homebuyers in Tampa need to earn 48% more now than they did a year ago in order to afford the median-priced home, according to a Redfin analysis released Wednesday morning.

Why it matters: This is an obvious hit to affordability for buyers. While wages are up in the U.S. since last year — around 6% higher — they're certainly not rising this fast.

The intrigue: Many of the folks buying homes in these markets aren't necessarily getting big raises they're pulling off a remote worker arbitrage.

  • Sunbelt cities like Tampa, Phoenix and Las Vegas are seeing a surge in home prices, in part because of an influx of remote workers moving in from pricier coastal cities.
  • "They're coming in with cash from selling their home or just from higher incomes," said Taylor Marr, deputy chief economist at Redfin who did this analysis.
  • Folks moving in from out of state have budgets that are 20%-30% higher than locals, he said, looking at the price range of what they're searching on the real estate site.

Plus: It's not just individual homeowners. Investors are also flocking to these metro areas, further driving up prices.

Go deeper