May 27, 2022 - Real Estate

Des Moines residents need to make more money to buy a home

Illustration of a gold-plated house-for-sale sign.
Illustration: Brendan Lynch/Axios

Des Moines locals have to earn 30% 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 soared as limited inventory and strong demand drove up sale prices, and surging mortgage rates have made home loans more expensive.

Why it matters: Wages and salaries are not increasing at that pace, further constricting entry into the housing market for many people.

Data: Redfin; Table: Thomas Oide/Axios
Data: Redfin; Table: Thomas Oide/Axios

By the numbers: In March 2021, you had to earn at least $38,036 to afford the median home for sale in the Des Moines metro area, Redfin found.

  • This March, you needed to make $49,438.
  • For a median sales price home of $267,000, a monthly mortgage, with 5% down, jumped from $951 to $1,236, per Redfin.

Of note: A monthly mortgage payment is considered affordable if the homebuyer spends no more than 30% of their income on housing.

Meanwhile, wages grew 5% nationwide over the same period, according to the Bureau of Labor and Statistics.

  • Median household income in the Des Moines metro is $71,734, shows newly released census data for 2016-2020.

Zoom out: Across the U.S., buyers need 34% more income to afford a home, Redfin found.

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