Realtor.com CEO Damian Eales discussed housing affordability in the U.S. on ‘Mornings with Maria,’ highlighting variations in affordability across different markets.
The “April Housing Trends Report” from Realtor.com identified U.S. markets where buyers need the highest income to purchase a median-priced home. The report found that five out of the top ten metro areas were in California, but there were also significant income requirements in other states.
Among the top ten metro areas requiring the highest incomes, all demanded at least six-figure earnings. The San Jose-Sunnyvale-Santa Clara market was at the top, with homes priced at nearly $1.4 million, requiring an income of just over $370,000.
In the San Francisco-Oakland-Fremont area, the report specified a required income of about $263,000 for a median home listing price of $995,000.
The Los Angeles-Long Beach-Anaheim area saw an 86% increase in required income since 2019, now needing nearly $315,900 for homes priced at $1.195 million.
The San Diego-Chula Vista-Carlsbad market required an income of over $258,900 for a median home price of $979,500. This marked a 6.7% decrease in median prices from the previous year.
In Seattle-Tacoma-Bellevue, homebuyers needed an income of nearly $206,800 to afford a median-priced home of $782,225.
The Boston-Cambridge-Newton market required an income of approximately $232,100 for homes priced around $878,000, with a notable increase in newly-listed homes.
The New York-Newark-Jersey City market required an income of almost $208,700 for median-priced homes, with a 69.4% increase in required income since 2019.
In Denver-Aurora-Centennial, homebuyers needed an income of over $158,400 for a median home price of $599,450.
The Sacramento-Roseville-Folsom area required a median income of nearly $167,500 for homes priced at $633,570, with an average market time of 38 days in April.
For the Washington-Arlington-Alexandria market, an income of about $164,680 was necessary for homes with a median listing price of nearly $623,000.
Overall, the report indicated that nationwide, a household income of $114,000 was required to purchase a median-priced home. This calculation was based on a 30-year fixed mortgage, a 20% down payment, and spending 30% of gross monthly income. The median home price in the U.S. was $431,250 in April, and the income needed to purchase a median home has increased by 70.1% over the last six years.
