Originally Published: 01 APR 24 14:48 ET
Updated: 01 APR 24 18:49 ET
By Jeanne Sahadi and Rachel Wilson, CNN
New York (CNN) — For anyone lookingto buy a new home, high mortgage rates, high home prices and a shrunken housing supply have made the whole process challenging to say the least.
Now a new analysis from Bankrate.com released Mondayfinds that in nearly half of US states, buyers will need a six-figure household income just to afford a median-priced home in their state if they’re planningto get a mortgage. (The median is the price at which half of homes for sale in an area are more expensive and half are less expensive.)
Back in January 2020, a six-figure income was needed in only six states and the District of Columbia.
Assuming you make a 20% down payment and get a 30-year fixed-rate mortgage at the average 52-week rate, this map shows you how much household income Bankrate’s analysis found you’ll need to afford the median-priced home in your state.
Keep in mind the study only considered the costs of securing a manageable mortgage payment (which includes principal, interest, property taxes and property insurance). “Manageable” means it won’t exceed 28% of your gross household income. The analysis did not factor in closing costs or the costs one incurs as a homeowner after you get the keys to your new house.
It’s worth noting, too, that the median price of a home in a given state won’t necessarily reflect the median price in the part of the state you’re seeking to buy.
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US home sales
**This image is for use with this specific article only** A six-figure household income is needed to buy a median-priced home in nearly half of US states this year, up from just six in 2020.
Feverpitched/iStockphoto/Getty Images via CNN Newsource
01 Apr 24
Housing map
Embargo: NONE For anyone looking to buy a new home, high mortgage rates, high home prices and a shrunken housing supply have made the whole process challenging to say the least.
CNN via CNN Newsource
01 Apr 24
