Philadelphians need more money to buy a home

Philadelphians have to earn 17.1% more than a year ago to afford the region's median-value home, according to the latest analysis by real estate company Redfin.

The big picture: The income needed to buy a home has increased as soaring demand and limited inventory continue to push sale prices up.

• Higher mortgage rates make borrowing more expensive, too.

Why it matters: Philadelphia incomes are not rising at that double digit pace, further constricting entry to the metro housing market.

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

By the numbers: In March 2021, you had to earn at least $41,920 to afford the median home for sale in the Philadelphia metro area, Redfin found.

• Now, you need to bring in $49,068.
• For a median sales price home of $265,000, a monthly mortgage, with 5% down, jumped from $1,048 to $1,227.

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 Philly grew 4.5% over the same period, according to the Bureau of Labor Statistics.

• Median pre-tax income in Philadelphia in 2021 was $60,000, per a recent Zillow study.