How much you need to earn to purchase a home in Massachusetts
The pandemic-induced run on housing has fueled an affordability problem for many would-be buyers, despite mortgage rates near the lowest levels ever. Now, homes in many states require a salary larger than buyers’ current median income.
Price appreciation is now outpacing wage appreciation in 90% of housing markets nationally, according to a separate report from Attom Data Solutions, a property database.
The median prices of single-family homes and condos are less affordable than historical averages in 63% of U.S. counties, up from 54% a year ago, the report found, based on the income needed to make the monthly mortgage, property tax, and insurance payments on a median-priced home with a 20% down payment.
To help address the national affordability crisis, President Joe Biden proposed a $15,000 first-time homebuyer tax credit, which could help with a down payment.