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Offline mystery-ak

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Buying a home now requires $50K more income than renting
« on: May 06, 2025, 09:47:05 am »
May 5, 2025 -
Business
Buying a home now requires $50K more income than renting

    Sami Sparber

Homebuyers have to earn over $50,000 more a year than renters to afford their monthly housing payments, according to a recent Redfin report.

Why it matters: A "triple whammy" of rising home prices, high mortgage rates and a shortage of houses for sale is making it harder for renters to make the leap to homeownership, per the report.

By the numbers: You need an annual income of around $116,600 to afford a mid-priced home — roughly 82% more than the $64,200 needed to afford a mid-priced apartment, the real estate site found.

    That gap has ballooned over the past few years.
    In comparison, the typical U.S. household earns an estimated $86,400.

Between the lines: Nationally, home-buying costs are climbing faster than rents, which have softened due to an influx of newly built apartments hitting the market.

    The median home price recently rose 4.5% from a year earlier to around $423,900, per Redfin, with mortgage rates hovering near 6.5%.
    And the median monthly rent was up 0.2% to roughly $1,600.

more
https://www.axios.com/2025/05/05/home-buy-rent-income-needed

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Offline jmyrlefuller

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Re: Buying a home now requires $50K more income than renting
« Reply #1 on: May 11, 2025, 07:12:44 pm »
And if you don't make enough to rent?

Not all of us are on six-figure income tracks. We need places to live, too, you know.
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Offline GtHawk

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Re: Buying a home now requires $50K more income than renting
« Reply #2 on: May 12, 2025, 01:11:40 pm »
Quote from: jmyrlefuller on May 11, 2025, 07:12:44 pm
And if you don't make enough to rent?

Not all of us are on six-figure income tracks. We need places to live, too, you know.
my rent right now is about what my house payment as in 2014 and if I only had my SS we wouldn’t be able to afford our fine 60 year old apartment complex that gets the absolute minimum care and maintenance possible. As a matter of fact the POS owner just eliminated all the visitor parking, turning the 15 spaces into $100 a month paid parking.
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Offline Wingnut

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Re: Buying a home now requires $50K more income than renting
« Reply #3 on: May 12, 2025, 01:34:59 pm »
Some people are born to rent...or live in a van down by the river.
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Online Hoodat

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Re: Buying a home now requires $50K more income than renting
« Reply #4 on: May 12, 2025, 01:45:10 pm »
For renters, you may want to consider moving to another State.  The following States offer averages for two-bedroom apartments below $1,000:

Arkansas
South Dakota
Iowa
Kansas
Missouri
North Dakota
Mississippi
West Virginia
Alabama
Nebraska
Kentucky
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Offline GtHawk

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Re: Buying a home now requires $50K more income than renting
« Reply #5 on: May 12, 2025, 02:18:46 pm »
Quote from: Wingnut on May 12, 2025, 01:34:59 pm
Some people are born to rent...or live in a van down by the river.
Man, a van down by the river now there’s a dream

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