The Income Needed to Buy a Typical Home Has Soared 80% Since 2020
By:
Pete Grieve
Pete Grieve
Reporter | Joined May 2024
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Editor:
Brad Tuttle
Brad Tuttle
Senior Editor | Joined January 2014
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Money; Getty Images
The income needed to afford a typical home has increased by a staggering 80% in the past four years, highlighting just how much current home prices and mortgage rates are straining buyers' budgets.
Last month, homebuyers needed to make about $106,500 to afford the monthly mortgage payments for a typical home. That’s up from about $59,000 in January 2020, according to a new report from Zillow.
Four years ago, most households could comfortably cover the monthly payments on a typical home because the median income was about $66,000.
