Owning a house in the US is getting expensive and out of reach for the average working-class American. Prices that were four years ago have jumped rapidly seeing an increase of approximately 45%. The US economy is recovering from the COVID-19 slumber as wages remain stagnant but housing prices increase. The latest data shows that home buyers in the US need six-digit salaries to even consider owning a median house.
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Home hunters in the US now need an annual salary of $110,871 to afford to buy a median-priced house. In 2020, owning a median-priced house stood at $75,939 but grew by 45% in four years making it reach $110,871. Data shows that wages in the US increased by 7% to 8% between 2020 to 2024 while house prices jumped 45%.
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Here’s the cost of owning a median house in the US in April 2020 vs April 2024:
April 2020 – $75,939
April 2040 – $110,871
The Biden administration needs to bring prices in the US under control and help buyers afford a decent house.
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Bankrate analyst Jeff Ostrowski explained that owning a house in the US will not be affordable anymore. He stressed that prices will not come down and will only get more expensive as the years pass. “There’s no sign that things will get better for buyers,” he said to Fox News.
The analyst said that a correction in the US housing markets is nowhere on the cards. “It’s hard to envision any type of price correction coming,” he said. “As recently as a few months ago, the consensus was that mortgage rates were going to be down below 6% by the end of this year. And that’s just not happening,” he said.
