Philadelphians need more money to buy a home
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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.