According to recent data from Zillow, the income required to comfortably afford a home has surged by 80% since 2020, necessitating an additional $47,000 more than in 2020. This outpaces the median income growth of 23% in the same period. As a result, a household earning the median income would now need almost 8.5 years to save enough for a 10% down payment on a typical U.S. home, a significant increase from 2020. In specific cities, the income needed has seen dramatic rises; in Dallas, the required income jumped from $67,720 in 2020 to $121,398 in 2024 (+79%), while in the Providence area, it escalated from $77,541 to $142,928 (+84%). Additionally, the affordability crisis extends to the rental market, with a record low in the share of affordable rentals for average income earners, indicating a broader issue of housing affordability across the United States.
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A recent report from Zillow found Denver area households need to earn this much more to afford a home than in 2020. https://t.co/RIgQVd4OuN
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Minimum amount Providence area households need to earn to comfortably afford the typical priced home 2020: $77,541 2024: $142,928 +84% (h/t @NewsLambert) https://t.co/89iJPIaKJt
What Dallas households need to at least earn to comfortably afford the typical priced Dallas home: 2020: $67,720 2024: $121,398 +79% Median Dallas household income: 2020: $72,774 2024: $88,579 +22% https://t.co/aMazmfYVTf https://t.co/DbUyOWNBBV
For a household making the median income, it would take almost 8.5 years before they would have enough saved to put 10% down on a typical U.S. home, about a year longer than it would have in 2020, per Zillow.
Home buyers need to earn $47,000 more than in 2020 per Zillow. The income needed to comfortably afford a home is up 80% since 2020, while median income has risen 23% in that time.