Kamala admits "what generations before call the 'American Dream'" is "out of reach for too many."
FACT: Under Kamala, the cost of homeownership has reached its highest in three decades — with housing costs up nearly 50% since she took office. pic.twitter.com/xF1T2dhX2N
— Trump War Room (@TrumpWarRoom) October 14, 2024
KAMALA: "I talked with somebody once who said, 'You know, if you just look at where the stars are in the sky, don't look at 'em as just random things. If you just look at 'em as points, look at the constellation — what does it show you?'"
— Trump War Room (@TrumpWarRoom) October 14, 2024
Home prices are up 42% since 2020, but because both rates and borrowing costs have skyrocketed, you need to earn 80% more to comfortably afford a home in today’s market.
Home prices are up 42% since 2020, but because both rates and borrowing costs have skyrocketed, you need to earn 80% more to comfortably afford a home in today’s market.
Median incomes have risen just 23% over the past four years, leaving many people out of the running for homeownership.
In 2020, a household earning $59,000 a year could afford a typical home priced at about $240,815. At the time, that income level was less than the US median income of $66,000, meaning more than half of American households had sufficient cash flow to purchase a home without overextending their budgets.
Today, those shopping for a home need to earn $106,000 annually to afford a median-priced home for $342,941.
That’s $47,000 more than they needed to earn in 2020 to afford a home and well above today’s average income of $81,000.
These findings from a new Zillow analysis revealed how tough breaking into homeownership has become as the cost of purchasing a home has outpaced income growth edging out hopeful buyers from the market.
A point of concern: Barely a handful of major metros evaluated were affordable at the median income. The real estate firm defines affordability as spending no more than 30% of your income after offering a 10% down payment.
“Incomes needed to purchase a home are just much, much higher than the typical household income,” said Orphe Divounguy, senior macroeconomist at Zillow, which conducted the analysis. “The increase in cost is pricing out many families that would like to get on the housing ladder.”
As home values and mortgage rates have climbed, the monthly mortgage payment on a typical US home nearly doubled over the past four years.
In fact, today’s typical buyer would be facing a monthly mortgage payment that was 96% higher compared to 2020 levels, Zillow found. That’s an average payment of $2,200 a month, with a 10% down payment.