Income needed to buy a typical home in Charlotte skyrockets

Charlotteans have to earn 39.1% more than a year ago to afford the region’s median-priced home, per the latest analysis by Redfin.

Why it matters: Charlotte incomes are not increasing at that pace, further constricting entry into the housing market.

The big picture: The income needed to afford a house has increased as home values soar and mortgage rates pass 5% for the first time in 10 years.

• Zoom out: It’s not just in Charlotte, either. Across the U.S., buyers need 34% more income to afford a home, Redfin found.

In March 2021, you had to earn at least $50,498 to afford the median home for sale in the Charlotte metro area. Now, you need to bring in $70,235. That’s the 11th largest jump in the U.S., per Redfin’s report.

• Go deeper: Surging mortgage rates make buying in Charlotte even more expensive

Yes, but: Wages for the Charlotte metro have only risen 4.2% year-over-year, according to Payscale. They’ve only increased by 22% since 2006.

The bottom line: The income needed to buy the typical home here is increasing much faster than actual salaries. As buying a home becomes more expensive and income growth lags, more Charlotteans will be priced out of buying a home here.