Homebuyers need to earn 80% more than in 2020 to afford a house in this market.

While the typical household in 2024 makes about $81,000 a year, up from $66,000 in 2020, wages have not kept up with housing cost

Economy/Energy/Finance

Homebuyers need to earn 80% more than in 2020 to afford a house in this market. It’s not just due to high mortgage rates. Factors beyond high mortgage rates are affecting housing affordability for many Americans, according to experts. Almost four years ago, a household earning $59,000 annually could afford a new mortgage without spending more than 30% of their monthly income and with a 10% down payment, according to a recent report by Zillow Group. That is no longer the case today. While the typical household in 2024 makes about $81,000 a year, up from $66,000 in 2020, wages have not kept up with housing costs. Nowadays, potential homebuyers need to make about $106,500 a year in order to afford the typical home today, an 80% increase from January 2020, according to Zillow.

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