How much do you need to earn annually to pay for a house in the United States

According to a recent Redfin report It would take on average a six-figure income annually to buy a home. in at least some of the 50 cities in the United States and this is partly due to the increase in mortgage rates this year.

Home prices continue to rise amid one of the worst times for the real estate market with mortgage rates reaching 7.5%, home sales have stagnated and rentals have taken the lead.

Renting has become a viable option for Americans except in Detroit, Cleveland, Philadelphia and Houston, said Daryl Fairweather chief economist at Redfin.

According to the analysis An American family would need an annual income of more than $100,000. to pay for a median priced home that is $40,000 more than the median household earns.

But, this is not the case in all states since, for example, in San Francisco, to afford a medium-sized house, a family income of at least $400,000 is needed. “Even places that have historically been affordable now need six figures,” Fairweather said

For Greg McBride, chief financial analyst at Bankrate.com, “they are not getting a bargain right now. In most major markets, particularly east of the Continental Divide, house prices are at record levels, and the cost of financing the purchase is the highest in more than 20 years.”

McBride advised making a good decision and analyzing the market since he believes that “lMortgage rates may go down at some point, but we are not going back to 3%; 2020 levels are not going to come back,” she said.

In this sense, the Bankrate analyst noted that “instead of jumping ahead to buy a house now, it is better to take 18 months to pay off the debt, increase savings and see another promotion at work. Home ownership will be much more sustainable than it is today. Meanwhile, you can do much worse things than rent,” he highlighted.

Keep reading:

• Rental prices in the US reached $1,747 dollars in September
• Homes in the US are out of reach of the American average due to high prices
• Home construction in the United States fell 11.3% in August