Want a house in Columbus? $54K a year is minimum wage
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Soaring housing costs in Columbus are nothing new, but here's a new way to measure the issue.
- To afford a median-value home, buyers here now need to earn about 31% more than they did this time last year, per the latest analysis by real estate company Redfin.
Why it matters: Wages and salaries are not increasing at the same pace, resulting in more people being priced out of the housing market.
The big picture: The cost increase comes as soaring demand and limited inventory continue to drive sale prices up.
- And increasing mortgage rates are making borrowing more expensive, too.
By the numbers: In March 2021, Columbus metro area buyers had to earn at least $41,300 annually to afford the median home sale price of $291,500, Redfin found.
- Now, they must earn nearly $54,000, which equals to about $26 per hour for a 40-hour work week.
- A monthly mortgage after paying a 5% down payment jumped from $1,032 to $1,349.
Of note: A monthly mortgage payment is considered affordable if homebuyers spend no more than 30% of their income on housing.
Meanwhile, wages grew just 5% nationwide over the same period, according to the U.S. Bureau of Labor Statistics.
- Median household income in Columbus in 2020 was nearly $55,000, according to Census data.
Zoom out: This isn't just a Central Ohio issue — across the U.S., buyers now need 34% more income to afford a home than in 2021, Redfin found.
