The cost to afford a median-priced home has increased at twice the rate that the average household income has risen as inflation and high interest rates inflame housing expenses, according to Redfin.
The median monthly home payment in February was $2,838, up 12% year-over-year, while the median household income was just $84,072, an increase of 6% over the last year, according to Redfin. Over the past decade, the income needed to afford a home has tracked closely with the median household income until around the start of 2022, when the amount of household income needed skyrocketed to its current median of $113,520 a year, as inflation, supply constraints, and high mortgage rates all raised costs.
