Income needed to buy a typical home in Raleigh skyrockets
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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.
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