American homeowners need to earn about $50,000 more than the typical renter to be able to afford monthly mortgage payments, according to new data from real estate brokerage Redfin.
“Americans need to earn $116,633 per year to afford the median-priced home for sale, 81.8 percent more than the $64,160 needed to afford the typical apartment for rent,” Redfin said in an April 10 statement.
In 2024, a person looking to buy a typical U.S. home could do so with earnings of about $110,808, $5,825 lower than this year. The amount needed to rent remained about the same.
According to the brokerage, a home is considered affordable when the homeowner spends no more than 30 percent of their income on the monthly housing payment….