Atlantans need to make more money to buy a home
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Atlantans have to earn 39.3% more than a year ago to afford the region's median-value home, per the latest analysis by real estate company Redfin.
The big picture: The income needed to afford a home has increased as soaring demand and limited inventory continue to push sale prices up.
- And increasing mortgage rates make borrowing more expensive, too.
Why it matters: Because incomes are not keeping pace with home prices, it further constricts entry into the metro Atlanta housing market for most people.
By the numbers: In March 2021, you had to earn at least $48,919 to afford the median home for sale in the Atlanta metro area, Redfin found.
- Now, you need to bring in $68,140.
- For a median sales price home of $368,000, a monthly mortgage, with 5% down, jumped from $1,223 to $1,703.
Of note: A monthly mortgage payment is considered affordable if the homebuyer spends no more than 30% of their income on housing.
Meanwhile, wages in Atlanta grew 3.3% over the same period, according to the Bureau of Labor and Statistics.
- Median pre-tax income in Atlanta in 2021 was $50,000, per a recent Zillow study.
Zoom out: Across the U.S., buyers need 34% more income to afford a home, Redfin found.