Oct 18, 2023 - Economy

You have to earn $115,000 a year to afford a typical house now

Data: Redfin; Note: Affordable means homebuyer spends no more than 30% of income on monthly mortgage payment; Chart: Axios Visuals

The median income in the U.S. is $75,000 a year, but you'll need to earn $40,000 more to comfortably afford the median-priced home, per a new analysis from Redfin.

Why it matters: With mortgage rates at 20-year highs and home prices hardly budging, the barrier to homeownership is only getting higher.

  • The median U.S. home price was $420,000 in August, per Redfin's data.
  • The average rate on a 30-year mortgage hit 7.92% Tuesday, according to Mortgage News Daily.

This story has been updated to include information on home prices.

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