Americans need to earn $116,633 per year to afford the median priced home for sale. That’s 81.8% more than the $64,160 they need to afford the typical apartment for rent—and the gap has been widening.
The cost of buying a home is rising faster than the cost of renting, which is why there’s a growing gap between the income someone needs to afford their own home versus an apartment. The median home-sale price rose 4.5% year over year to $423,892 in February, and has been growing at roughly that pace for months.
The typical U.S. household earns an estimated $86,382—roughly $30,000 less than the income required to afford the typical home for sale. Meanwhile, the median asking rent rose just 0.2% year over year.
Source: Redfin
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