Jun 13, 2022 - News

Nashvillians need to make more money to buy a home

Illustration: Brendan Lynch/Axios

Nashvillians have to earn 41.8% 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 drive sale prices up.

  • And increasing mortgage rates make borrowing more expensive, too.

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 $56,155 to afford the median home for sale in the Nashville metro area, Redfin found.

  • Now, you need to bring in $79,618.
  • For a median sales price home of $429,990, a monthly mortgage with 5% down jumped from $1,404 to $1,990.

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.

  • The median pre-tax income in Nashville 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.


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