The average American now needs 46% more income than a year ago to buy a home
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High mortgage rates, the increase in the cost of living and the fact of facing the highest inflation rate in decades, It has complicated the outlook for millions of Americans who wanted to buy a home this year.
Now, people interested in investing in real estate in the long term must demonstrate that they receive more income, otherwise it will be difficult for them to access a loan.
Just to acquire a modest house in the United States through a mortgage, the interested party must receive at least $254,281 annual dollars, because only then would you be able to cover an average monthly payment of $2, 682 dollars, which is quite high if one takes into account that last year it was only required to guarantee income of $70,286 dollars, that is to say that currently required 70.6% more financial solvency.
While it is true that mortgage rates have more than doubled in the last 21 months, the average wage per hour at the national level has only grown around 5%, a disproportionate figure between what is received and the objectives that are intended to be achieved through said amount of money.
According to Information released by Redfin Corporation, a specialist residential real estate firm in 95 markets in the United States, from February of 2020 through October 2022, the monthly payment of an average American who buys a mid-level house, increased approximately 70%.