Oct 30, 2023 - Real Estate

How much you need to make to afford a home in Raleigh

Illustration of a door knocker in the shape of a dollar sign — Illustration: Sarah Grillo/Axios

The median income in the Triangle is close to $93,000 a year, but you'll need to earn $120,000 to comfortably afford a median-priced home in Raleigh, per a new analysis from Redfin.

That's more than a 17% jump in required income since last year — and above the national average.

Why it matters: With mortgage rates at 20-year highs and home prices hardly budging, the barrier to homeownership in Raleigh is only getting higher.

Americans haven't felt this discouraged about home buying in decades, thanks to a lack of supply and record-high mortgage rates that have forced would-be buyers to the sidelines, Axios' Brianna Crane reports.

78% of Americans think it's a bad time to buy, according to a recent Gallup survey. The percentage hasn't been this high since Gallup started asking the question in 1978.

By the numbers: The median Raleigh home price was $440,000 in August, per Redfin's data.

And the median monthly mortgage payment here is around $3,000.

The big picture: The Triangle continues to have one of the hottest housing markets in the country — especially as newcomers from more expensive cities bring higher incomes and offer prices.

The state as a whole added the third-largest number of residents between July 2021 and July 2022, according to new U.S. Census Bureau figures.

Zoom out: Nationally, the median income is $75,000 a year, but you'll need to earn $40,000 more — $115,000 — to afford the typical home, Axios' Emily Peck writes.

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How much you need to make to afford a home in Raleigh

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