Individuals are flocking to the suburbs — this is how a lot it’s essential to earn to purchase a home
Home ownership has long been considered a staple of the American dream.
During the pandemic, it has also become a dividing line between the haves and have-nots.
As the coronavirus outbreak and rise of remote work pushed Americans to move from the city to the suburbs, those who could afford a single-family home have been able to leverage historically low interest rates to build equity and net worth.
Many are doing just that. During 2020, the homeownership rate jumped to roughly 67%, up nearly 3% from a year earlier after remaining largely flat for a decade, according to the Census Bureau.
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But high demand for housing — along with a record low supply of homes for sale — has also caused a sharp spike in home prices, shutting others out entirely.
The pandemic-induced run on housing has fueled an affordability problem for many of those would-be buyers, despite mortgage rates near the lowest levels ever. Now, homes in many states require a salary larger than buyers’ current median income.
Here’s a look at just how much money it takes to afford the average home in each state, according to career planning site Zippia.com. Nationwide, the median home price is $346,800.