"Starter Home Affordability Gap: How Much More Buyers Need to Earn"
First-time homebuyers now need to earn nearly twice as much money to afford a starter home compared to pre-pandemic times, with the median income being 11% higher than what's needed. The monthly housing payment for a starter home has jumped 8.2% from a year earlier, reaching $1,896, due to elevated mortgage rates and high home prices. Redfin data shows that a typical American household earned an estimated $84,072, up 5.5% from a year earlier, but incomes are not keeping pace with the rate of starter-home costs. The pandemic has changed the definition of a starter home, with the most affordable homes being smaller and often requiring more work, making them even more costly.