Homeownership is receding further out of reach for most Americans as elevated mortgage rates and rising prices stretch the limits of what buyers can afford.

A homebuyer now needs to earn at least $114,000 a year to afford a $431,250 home – the national median listing price in April, according to data released Thursday by Realtor.com

The analysis assumes that a homebuyer will make a 20% down payment, finance the rest of the purchase with a 30-year fixed-rate mortgage, and that the buyer’s housing costs won’t exceed 30% of their gross monthly income — an often-used barometer of housing affordability.

Based off the latest U.S. median home listing price, homebuyers need to earn $47,000 more a year to afford a home than they would have just six years ago. Back then, the median U.S. home listing price was $314,950, and the average rate on a 30-year mortgage hovered around 4.1%. This week, the rate averaged 6.76%.

  • talEnglish
    1·
    2 days ago

    I’m in a red and rural area and plumbers here are pulling in 90-100k starting

    If accurate, I would say that that is probably not very reflective of the national situation.

    https://www.servicetitan.com/blog/plumber-salary

    For entry-level plumbers, the median annual base salary is $52,000, or $25 per hour.

    For intermediate plumbers with 2-4 years of experience, the national average rises to $67,600, or $32.50 per hour.

    At the senior level, defined as 4-6 years of experience, the average is $73,200, or $35.19 per hour.

    There’s also a per-state breakdown, which doesn’t show dramatic variation.