Homeownership now costs well over the 30% of median income that was once thought to equate to “affordable” housing in the U.S. Roberto Schmidt/AFP via Getty Images
Revelation 13:16-18 “Also it causes all, both small and great, both rich and poor, both free and slave, to be marked on the right hand or the forehead, so that no one can buy or sell unless he has the mark, that is, the name of the beast or the number of its name. This calls for wisdom: let the one who has understanding calculate the number of the beast, for it is the number of a man, and his number is 666.”
Important Takeaways:
- Mortgage payment on a typical home nearly doubled in last 4 years, report finds
- In case you needed more evidence to explain why U.S. consumers aren’t exactly cheering in the stands for this all-in-all pretty-good economy, let’s look at exhibit one: housing affordability.
- The real estate firm Zillow reports that since January 2020, the monthly mortgage payment on a typical U.S. home has nearly doubled. It’s up 96% in just four years.
- According to Zillow, a typical buyer will now pay nearly $2,200 a month, with a 10% down payment. Meaning, homeownership now costs well above the 30% of median income that was once thought to equate to “affordable” housing cost in America.
- And with the 30-year fixed-rate mortgage hovering around seven percent right now, there’s not a whole lot of light at the end of this tunnel.
- With prices rising by leaps and bounds, it’s been a good time to sell a home. But it’s not so great to try to buy, says Orphe Divounguy, senior economist at Zillow.
- “After the surge in home-buying demand and mobility during the pandemic, and the doubling of mortgage rates, home-shoppers now need to earn $106,000 to afford the median home in the United States,” said Divounguy.
- Back in 2020, the salary needed to afford the median monthly mortgage payment was just $59,000. Real estate broker Israel Hill has seen the affordability crunch in Portland, Oregon.
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