Americans now need to make $120K a year to afford a typical middle-class life and qualify to purchase a home, one expert discusses.
“I think most of us in America would define the middle class as somebody who can work a 40-hour-a-week career and can have the income to purchase the average home in America,” Freddie Smith, an Orlando realtor and TikTok creator, told Fox News Digital.
The TikToker, whose videos explore millennial and Gen Z struggles to afford a home and the general cost of living in today’s economic climate, dissected the common factors of living a middle-class existence.
“A lot of us grew up middle class, and we watched what middle class was in the 80s and 90s as millennials. And nowadays, what has moved the goalpost more than anything is the housing market,” the relator said.
Vast majority of aspiring homeowners say they cannot afford the American dream
Owning a home has long been considered the main pillar of the American dream, but the vast majority of aspiring homeowners in the U.S. say they simply cannot afford it.
A new survey released by Bankrate Wednesday found 78% of would-be homebuyers cited financial factors when asked what was holding them back from making a purchase.
The most common challenges cited by respondents were insufficient income (56%), followed by home prices being too high (47%) and the inability to afford down payments and closing costs (42%).
The findings come as a housing affordability crisis in the U.S. continues to escalate with no end in sight.
The US economy now has:
1) MEDIAN HOME PRICES AT ALL-TIME HIGHS OF $434K
2) 37 MONTHS OF INFLATION ABOVE 3%
3) Falling consumer confidence and sentiment
4) $2 trillion deficits
5) $34.6T NATIONAL DEBT
6) 600k full-time jobs lost in the last 12 months👇t.co/z19HWIV1eR— Global Markets Investor (@GlobalMktObserv) May 23, 2024