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
