TAMPA, Fla. (WFLA) — Buying a house in Florida isn’t cheap and according to a report from Redfin, it is now harder than ever for Americans to afford a home.
Sky-high mortgage rates and rising home prices have made it more difficult than ever, especially for first-time home buyers, Redfin said.
To afford a home, Redfin said buyers must earn $114,627 to afford the median-priced U.S. home, up 15% ($15,285) from a year ago and up more than 50% since the start of the pandemic.
The real estate website said a typical household earns about $40,000 less than the income needed to buy a median-priced home.
“Hourly wages have risen in 2023, but not nearly as fast as the income necessary to afford a home is rising: The average U.S. hourly wage has increased by about 5% over the last year,” Redfin reported.
“In a homebuyer’s ideal world, rising mortgage rates would push demand and home prices down enough to make up for high interest payments. But that’s not what’s happening now: Although new listings are ticking up slightly, inventory is still near record lows as homeowners hang onto their low mortgage rates–and that’s propping up prices,” said Redfin Economics Research Lead Chen Zhao. “Buyers–particularly first-timers–who are committed to getting into a home now should think outside the box. Consider a condo or townhouse, which are less expensive than a single-family home, and/or consider moving to a more affordable part of the country, or a more affordable suburb.”
Here is how much you will need to make in order to afford a home in Florida, according to Redfin:
Annual income required to afford median-priced home
|YoY change, annual income required to afford median-priced home||Median monthly mortgage payment||Median home-sale price|
|West Palm Beach||$125,459||24.4%||$3,136||$460,000|
Redfin said the data is based on an analysis that compared median monthly mortgage payments in August 2023 and August 2022.
To be considered affordable, a homebuyer must spend no more than 30 percent of their income on housing.