“Housing costs are high across the board, but renting is a more affordable and realistic option for many Americans right now—especially those who have never owned a home and aren’t able to tap into equity from a previous sale,” said Redfin chief economist Daryl Fairweather.
To afford a typical starter home, first-time buyers must now earn approximately $76,000 annually – an 8% increase from a year ago and nearly double pre-pandemic levels.
Renters feel the squeeze
The affordability crisis extends beyond aspiring homeowners. Many renters are already struggling with their current housing costs.
Read more: How are homebuyers viewing the current mortgage market?
Nearly one-quarter (24%) of renters regularly struggle to afford their housing payments, and an additional 45% say they sometimes struggle to do so. The surge in demand for rentals during the pandemic, coupled with the recent spike in asking rents (now near $2,000, close to the 2022 record high), has significantly burdened renters.
Source: mpamag.com