The Covid pandemic has caused a sharp increase in the median income required for new homebuyers, with many now needing to earn more than $100,000 to purchase a home. The exclusivity of today’s housing market means that even those with six-figure salaries can struggle to afford a home. In 2023, new homebuying households had a median income of $110,000, with buyers under 40 earning $114,000. This increase in income requirements is pricing out younger generations, who are earning more than previous generations but still finding it difficult to become homeowners.
Experts warn that rising incomes can lead to inflation as prices increase, creating an inflationary cycle. Those who are priced out of homeownership are contributing to a growing class of renters, which is reshaping neighborhoods and leading to changing dynamics in the housing market. In Oregon, new homebuyers made over $120,000 in 2023, a 20% increase from 2019, with home prices nearly doubling in some counties since the pandemic.
One example is Ryan Holley, who bought a home in Oregon in 2017 but struggled to find a new home in the Las Vegas area despite earning over $130,000 a year. High mortgage rates and intense competition in certain areas have made it difficult for many potential buyers to afford a home, even with high incomes. The trend of needing a high income to buy a home is affecting buyers across the country, with the median income for new homebuyers in the Las Vegas metro area averaging around $115,000.
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