Hey, future homeowner! Mortgage rates are back on the rise and home prices aren’t helping either. 📈 Today, a first-time homebuyer household needs to earn $120,000 to afford an average priced house.
Catch up quick
Today, to comfortably afford the median-priced home ($332,494), first-time buyers need a household income of $119,769. The median home is affordable for median earners in just four states and six of the 50 largest metro areas.
Let’s talk solutions, not problems️
If home prices near you aren’t affordable, expand your search.
Near: consider more affordable cities and towns that are adjacent to your target search area. Sometimes just 10 miles can save you 50%.
Far: there are six major U.S. metros where the median-earning household can afford the median-priced home: Pittsburgh, Cleveland, St. Louis, Memphis, Indianapolis, and Birmingham.
If moving isn’t an option for you and your family, expand your criteria.
Must haves: create the shortest possible list of your requirements, like number of bedrooms, and start your home search there.
Nice to haves: rank all of the other important things on your wishlist, like an extra bathroom, and be prepared to compromise if need be.
The bottom line
Over 1 million first-time homebuyers will successfully purchase a house this year. Affordable homes are out there, but you may need to be flexible to find one. Remember, your starter home does not need to be your forever home!
Keep saving, building, and making progress! We’re here to help.
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