May 31, 2022 - Real Estate

Income needed to buy a typical home in Raleigh skyrockets

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

Raleigh residents have to earn nearly 46% more now compared to year ago to afford the region's median-priced home, per real estate company Redfin's latest analysis.

  • In March 2021, you had to earn at least $53,412 to afford the median home for sale in the Raleigh metro area. Now, you need to bring in $77,749.

Why it matters: Raleigh incomes and wages are not increasing at that pace, further constricting entry into the housing market for most people.

Zoom out: It's not just happening in Raleigh. Nationwide, the income needed to afford a home has increased as property values soar and mortgage rates pass 5% for the first time in 10 years.

  • Across the U.S., buyers need 34% more income to afford a home, Redfin found.
  • Our neighbors in Charlotte need 39% more income to afford a home there.
Data: Redfin; Table: Thomas Oide/Axios
Data: Redfin; Table: Thomas Oide/Axios

Yes, but: Wages for the Raleigh metro have only risen 3% year-over-year, according to Payscale. And they've only increased by about 22% since 2006.

Bottom line: The income needed to buy the typical home here is increasing much quicker than actual incomes.

  • As buying a home becomes more expensive and income growth lags, more people will be priced out of buying a home in Raleigh.

Go deeper: Surging mortgage rates making home buying more expensive in Raleigh

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