OT: Americans Now Need A Six-Figure Salary To Afford A Median-Priced Home

avatar for Papi_Chulo
Papi_Chulo
Miami, FL (or the nearest big-booty club)
Homebuyers in the United States must earn six-figure salaries in order to afford a median-priced home, according to an analysis from real estate brokerage Redfin.

As housing prices remain elevated and the monthly mortgage payment on the typical home surges more than 45% since the same time last year to reach $2,682, the annual salary required to afford such a property has increased from $73,668 to $107,281. Average hourly wages have nominally increased 5% over the same period as inflation continues to erode consumer purchasing power.

“High rates are making buyers rethink their priorities, as many of them can no longer afford the home they want in the location they want,” Redfin Agent Chelsea Traylor, who works in Washington, D.C., commented. “If you had a $900,000 budget a few months ago, rising rates mean it’s now around $700,000 — and sellers aren’t dropping their prices enough to make up for the change. So buyers are searching further away from the city in more affordable areas.”

Four of the five metropolitan areas with the most rapid increase in annual income required to afford a median-priced home are located in the state of Florida. Buyers in the city of North Port must earn $131,535 to afford a $3,288 monthly payment, while those in Miami, Tampa, and Cape Coral must likewise collect six-figure salaries.

Meanwhile, the five metropolitan areas requiring the highest income are all in California, with buyers in San Francisco needing a $402,821 salary to afford a $10,071 monthly payment. A previous report from the National Association of Home Builders likewise found that all of the least affordable real estate markets in the country are in the Golden State.

Florida saw the nation’s largest net domestic migration between July 2020 and July 2021, with more than 220,000 people moving to the state, according to data from the Census Bureau. Florida was followed by Texas and Arizona, while New York, California, and Illinois led the nation in terms of population decline.

Traylor remarked that some buyers are waiting for prices or rates to decrease before they purchase a home. “I’m encouraging buyers to think long term,” she continued. “Prices are unlikely to fall drastically in the long run, so buying a home now — if you can afford the monthly payment — will still help you build wealth over time, especially if you plan to live in it for several years. Even though rates are high, another advantage of buying now is the lack of competition and opportunity to negotiate with sellers.”

As of one year ago, homebuyers only needed six-figure salaries to afford a median-priced home in 16 metropolitan areas considered by Redfin. Today, however, such conditions exist in 45 cities.

Recent declines in housing affordability occur as mortgage rates witness one of the largest sustained increases in decades. The 30-year fixed mortgage rate remained below 3% for much of the past two years, according to data from government-backed mortgage company Freddie Mac. The rate surged from approximately 3% earlier this year to more than 7% earlier this month, with most of the increases occurring after the Federal Reserve hiked target interest rates at four consecutive 0.75% increments.

https://www.dailywire.com/news/americans…

31 comments

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avatar for BubbleYum
BubbleYum
2 years ago
I'm scared for America's financial future. More specifically, I'm afraid for myself and those in the same boat as I in regards to getting through this (unofficially announced) recession. Home ownership is something far out of reach currently for myself and numerous other dancers I know or work with.
avatar for Papi_Chulo
Papi_Chulo
2 years ago
Dancers typically have more flexible-schedules so perhaps they can afford to live further out from the city-center where it may be cheaper (assuming they have a car for transportation).

When I lived in Dallas I knew dancers that lived in smaller towns farther away where it was supa-cheap (at least back then) - I knew some dancers that would even drive-down from OKC and stay (in friend's houses) and dance the weekends.
avatar for Icee Loco (asshole)
Icee Loco (asshole)
2 years ago
My goal is to be in a position to leave and not have to worry about money next year. And at tahy point to really consider leaving the US
avatar for skibum609
skibum609
2 years ago
^Spoken like a little welfare bitch who never has and never will own a damn thing. Leave the USA. Lmao. Like another country would take a welfare case.
avatar for shailynn
shailynn
2 years ago
Robots are buying up all the cheap houses. Really, no joke, read this article on how the closest thing to affordable housing in many cities is now becoming out of reach for everyone.

https://www.vice.com/amp/en/article/dy7e…
avatar for mark94
mark94
2 years ago
In Phoenix, thousands of investor-owned properties, purchased in the last couple years, are being sold at $100,000 less than the recent purchase price. Anything that can’t go on forever ( like double digit home appreciation ), won’t.

As with any investment, the small number of people who get in early do fine. The majority of people who wait until an asset has appreciated, then jump on the bandwagon, lose their shirt. Buy high, sell low.

That’s why buy and hold works best for most.
avatar for gammanu95
gammanu95
2 years ago
That everyone should own a home is the same fallacy that everyone should have a college degree. Not everyone should or should want to. More importantly, we need to begin preserving green space and encouraging vertical development on existing plots. Unfortunately, everyone thinks they want 3,000sf, 3BR+den, architecturally unique homes on 1/4 acre or more, with a pool. At no point in my lifetime has that been affordable on the average American 2-salary income. It's like the expectation that every woman hae a body like Emily Ratakowski or every man look like Brad Pitt. These are not everyday, attainable goals That does not mean the opposite extreme is okay - a bunch of fatass 300lbers sitting around their ramshackle ghettoes and trailer parks.

I feel that our society really missed an opportunity with the tiny home revolution. A lot of overengineered trailers were marketed as tiny homes, and a lot of tiny home were not accessible to people who were not Olympic athletes (the climbing and contortions to make everything work). However, if builders were to target the segment of Lower-middle class incomes ($45,000-$65,000), with sensible small homes utilizing tiny home technology (no stepladders on walls to loft bedrooms) with 1,300-1,500sf footprints on modest lots, then I believe that people could afford himes even with the absurdly high mortgage interest rates brought to us by Brandon (Jimmy Carter 2.022).

avatar for nicespice
nicespice
2 years ago
Eeh sorry, on the tuscl discussion board it’s only acceptable to get freaked out over restaurant and gasoline pump prices. Things like home and rent prices is just the mere ability to have a roof over one’s head and not worth complaining about unless one is just a whiny snowflake.
avatar for twentyfive
twentyfive
2 years ago
^ damn straight
Besides tents are cheap, camp out you’ll save some money.
avatar for Muddy
Muddy
2 years ago
Yeah it’s time build more houseing. In NY you have all these rent control laws, CA all these environmental bullshit before you can build anything. There’s too many fucking laws, too much bureaucracy bullshit to keep up with building for this growing population we got going on here, thus insane prices.
avatar for ilbbaicnl
ilbbaicnl
2 years ago
People, especially in the US, are infantile. We want Wild West free enterprise. But when that leads to many people being peonizied, we blame the government we've hobbled, and vote in racist authoritarians, like that's going to fucking fix anything ever.

Suppose middle class people lived in nice, reasonable-sized condos, with good walls between units that provided sound-proofing. With a nice park with sports fields for pick up games withing walking distance. It would be much more affordable. People who didn't work at home would have short commutes, due to the higher housing density. Good mass transit would be economically viable.
avatar for Icee Loco (asshole)
Icee Loco (asshole)
2 years ago
I want the whole system to crash. The only war worth fighting is the class war
avatar for shadowcat
shadowcat
2 years ago
If it comes down to the spotted owl having a home or I have a home, I win.
avatar for skibum609
skibum609
2 years ago
^Lmao you fucktard. Unless you fight 5-year-old girls you will get your pathetic, faggot ass kicked.
avatar for Tetradon
Tetradon
2 years ago
"I want the whole system to crash. The only war worth fighting is the class war"

Dumb dumb dumb.
If there's a class war, I'm betting on the class with money.
avatar for Icee Loco (asshole)
Icee Loco (asshole)
2 years ago
I'm not. It will end up being a numbers game
avatar for Tetradon
Tetradon
2 years ago
^

"I can hire half the working class to kill the other half." - Jay Gould

Somehow all your wet dream coffee house revolutions always go to shit.
avatar for Icee Loco (asshole)
Icee Loco (asshole)
2 years ago
Things are changing. People are a lot more class conscious coz of the cash grab/inflation.
avatar for skibum609
skibum609
2 years ago
^ I agree completely. I discuss this every Friday with my Butler, Maid, gardener and Cook.
avatar for mark94
mark94
2 years ago
A big part of the housing crisis is the result of over regulation of housing by local and state government. They limit where a house can be built, how many, what it looks like, how it’s built, who builds it, and who can live in it.

After WWII, the nation went on a massive home building spree. Millions of homes like those in Levittown.

https://www.levittowners.com/the-history…

There is nowhere in America where government would let such “ Wild West free enterprise” take place today.
avatar for Muddy
Muddy
2 years ago
@mark94 that’s actually where I grew up!
avatar for rickmacrodong
rickmacrodong
2 years ago
Lol its not about a numbers game it also depends who has more firepower.
avatar for Tetradon
Tetradon
2 years ago
@BTE, taking Icee seriously on politics is up there with taking desertscrub's "club ad" calls seriously.

Just don't.
avatar for Icee Loco (asshole)
Icee Loco (asshole)
2 years ago
Teyraplop kisses cacaplops ass coz they're both right wing nuts.

People are finally getting aware of what capitalism is. Change will come if prices don't go down.
avatar for rickmacrodong
rickmacrodong
2 years ago
^you want the class war and chaos so you can start your looting again lulz
avatar for Tetradon
Tetradon
2 years ago
"People are finally getting aware of what capitalism is. Change will come if prices don't go down."

Yawwwwwn. You've been saying this for over a hundred years. Keep playing armchair revolutionary in a cloud of pot smoke.
avatar for gammanu95
gammanu95
2 years ago
Whenever I see a homeless person with a sad little scrap carboard sign beggeing at an intersection, the only thing I can think is businesses everywhere need employees. Race Trac is offering $15.50/hr. $12-$14 at McDonald's for crew, $21 for managers (some are even offering $60K plus benefits for GMs, but you need business skills & experience for that). Businesses everywhere are short-handed, and everyone is hiring. You really have to put effort into being unemployed.

Now that I'm thinking about it, maybe I'll just grab applications whenever I'm in a place that's hiring and start giving those out to homeless beggars at intersections.
avatar for skibum609
skibum609
2 years ago
"people are finally becoming aware of what capitalism is?" Literally the fucking stupidest comment ever made. Are you aware Icee stupid that inflation is worldwide and that people in your beloved socialist/communist countries are suffering far worse? Of course, you aren't, you're just a trolling, know-it-all, low-life asshole. Socialism succeeds under one unique circumstance: they have a capitalist country to pay for them. The mere fact you're against it indicates others should be 100% for it. You're just garbage.
avatar for Icee Loco (asshole)
Icee Loco (asshole)
2 years ago
A lot of job ads are fake. They do it to comply with ppp conditions. Like they're searching for employees. Others offer low wage part time work no one can live off of. Many ads cite pay rates you can aspire to not what you get.

Skibitch. Saying we should shut up about inflation coz it'd global is like saying be glad you're doing of lung cancer and not brain cancer. And your harassing posts are all being noted
avatar for rickmacrodong
rickmacrodong
2 years ago
Icee thats not true the job ads are fake, you made that up because you’re bitter and have a vendetta against business owners, you admitted theyre evil
avatar for skibum609
skibum609
2 years ago
Wow Icee are my posts going on my permanent record, you know the detailed one the police keep on our interaction? I sure hope so because I forget to save anything. Au contraire Mr. Icee I hope everyone bitches about inflation. That way I won't have to waste any time on it. If you are suffering due to inflation all I can say is that is pissah, wicked pissah.
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