Home Price Shock: When Salaries Fall Behind
Home affordability has cratered—from 39 major markets to just 11 where median earners can still buy. In this eye-opening episode, Tim Lucas and Craig Berry unpack the widening gap between home prices and paychecks. You’ll learn:
- Affordability Collapse: How three years ago 39 metros were within reach—and now only 11 remain affordable for median earners
- Salary Multiples Surge: Why today’s median home costs 5.6× annual income versus under 3.9× before 2000—the worst since records began
- Down‑Payment Dilemma: Even with a $73,000 nest egg, you’d still need an extra $17,670 in yearly earnings to afford today’s typical home
- Inventory vs. Inertia: Why rising listings (over 1 million homes vs. 346K in Feb 2022) aren’t easing prices—locked‑in 3% mortgages are keeping sellers sidelined
- Avocado Toast Myth: Crushing the notion that cutting small luxuries can bridge a $17K annual gap—bread and butter won’t buy a home
- Generational Impact: How this crisis reshapes the American dream, calling for policy innovation beyond personal budgeting
For the full deep dive, read the original article here:
https://www.mortgageresearch.com/articles/home-prices-as-salary-multiples-rising/
https://www.mortgageresearch.com/articles/home-prices-as-salary-multiples-rising/
