Americans are flocking to the suburbs — here’s how much you need to earn to buy a house

News

Home ownership has long been considered a staple of the American dream.

During the pandemic, it has also become a dividing line between the haves and have-nots.

As the coronavirus outbreak and rise of remote work pushed Americans to move from the city to the suburbs, those who could afford a single-family home have been able to leverage historically low interest rates to build equity and net worth.

Many are doing just that. During 2020, the homeownership rate jumped to roughly 67%, up nearly 3% from a year earlier after remaining largely flat for a decade, according to the Census Bureau.

More from Personal Finance:
Some newlyweds face a ‘marriage tax penalty’ 
A financial snapshot of America one year after Covid
What to do to get your $600 stimulus check

But high demand for housing — along with a record low supply of homes for sale — has also caused a sharp spike in home prices, shutting others out entirely.

The pandemic-induced run on housing has fueled an affordability problem for many of those would-be buyers, despite mortgage rates near the lowest levels ever. Now, homes in many states require a salary larger than buyers’ current median income.

Here’s a look at just how much money it takes to afford the average home in each state, according to career planning site Zippia.com. Nationwide, the median home price is $346,800.

Products You May Like

Articles You May Like

Cramer says he owns ‘a lot’ of red-hot cryptocurrency ether that’s tripled bitcoin’s 2021 gain
Selling Your Home In An Uncertain Market | Barbara Corcoran Real Estate
Putting Property in an LLC | LLCs for Real Estate & Asset Protection
Mother Of FIVE & A Thriving Real Estate Investor – Women Of Action (Ep. 10)
Why Bill Gates Sold All His Stock… Ans Bought This One

Leave a Reply

Your email address will not be published. Required fields are marked *