A for sale sign stands outside a single-family residence on Wednesday, May 22, 2024, in southeast Denver. Policymakers’ willingness to keep their key rate at a two-decade peak — thereby keeping costs painfully high for mortgages, auto loans and other …Home prices have climbed 42% since 2020, as rising mortgage rates and borrowing costs are creating barriers to homeownership, a new study shows.
“Incomes needed to purchase a home are just much, much higher than the typical household income,” said Orphe Divounguy, chief economist at Zillow. “The increase in cost is pricing out many families that would like to get on the housing ladder.” Today, the scenario has drastically changed. To afford a median-priced home costing $342,941, buyers need an annual income of $106,000. That is $47,000 more than what was needed in 2020 and significantly higher than the current average income of $81,000.