The Rising Cost of Housing: A Financial Burden for Americans

A new report from Redfin reveals that the typical American household needs an annual income of $115,000 to afford the median priced home, which is $40,000 more than the average household makes. In fact, a six-figure income is required to buy a median priced home in at least 50 U.S. cities. Rising home prices, limited supply of existing homes, and high mortgage rates are contributing to the affordability crisis. Renting is becoming a more affordable option in most major markets, except for Detroit, Cleveland, Philadelphia, and Houston. Experts advise aspiring homeowners to pay down debt, boost savings, and wait for more inventory to become available.