"Analysis: Six-Figure Incomes Required for Home Affordability in 22 U.S. States"
A new analysis from Bankrate.com reveals that in 22 states and Washington, DC, a six-figure household income is now required to comfortably afford a typical median-priced home, a significant increase from just six states and the District of Columbia in January 2020. Factors contributing to this include rapid home price appreciation outpacing wage growth, limited housing supply, and the "lock-in effect" of higher mortgage rates and home prices. The West Coast and Northeast require the highest household incomes, while the South and Midwest require the lowest. Affordability changes over time are evident in the significant increase in income needed to buy the average home today compared to 2020, with the Sun Belt becoming less affordable due to an influx of new homebuyers.