Lending reports

Redfin Reports Homebu Solar Belt

(NASDAQ: RDFN) – Homebuyers in Tampa, Florida need to make $67,353 a year to pay the metro area’s typical monthly mortgage payment of $1,684, up a staggering 47.8% (21,791 $) over the previous year, according to a new report by Redfin (www.redfin.com), technology-powered real estate brokerage. That’s the largest percentage increase of any major US metro.

Homebuyers in nearly every region of the country have felt the impact of soaring house prices since the start of the pandemic, but especially those in the Sun Belt, which have seen costs soar even more than d other regions as foreigners flock.

In Phoenix, buyers need to earn $87,026 to pay the region’s typical monthly mortgage payment of $2,176, up $27,302 (45.7%) from a year earlier, and in Las Vegas, buyers need to earn $79,620 to pay the typical payment of $1,990, up $24,923 (45.6%) from a year ago. This was followed by the following metros, all of which saw gains of nearly 40% or more: Orlando, FL, Jacksonville, FL, Nashville, TN, Austin, TX, Fort Worth, TX, Anaheim, CA, Dallas, Atlanta, Charlotte , NC and San Diego. In the report, Redfin uses the word “homebuyer” to refer to someone who takes out a loan to finance the purchase of their home.

Pandemic-fueled remote work is driving a record share of shoppers from one part of the country to another, and Tampa, Phoenix and Las Vegas are all among the top five most popular destinations. Buyers are attracted to Sun Belt communities in part because they are relatively affordable compared to expensive coastal job centers, but the resulting rise in home prices could make them less popular in the future.

US buyers need 34% more income to afford a home

Nationally, homebuyers need to earn $76,414 a year to pay today’s typical monthly mortgage payment. This is an increase of $19,478 (34.2%) over the previous year. The income needed to afford a home has increased by more than 15% year over year in the 50 most populous US metros tracked by Redfin. During the same period, the average hourly wage in the United States increased by 5.6%.

The income needed to afford a home started to climb early last year and has surged again this year as rising demand, limited inventory and rising mortgage rates have led to rapidly rising selling prices. . The national median home sale price rose 17% from a year earlier to a record high of $412,700 in March, and the number of homes for sale fell 13% to an all-time low.

Mortgage rates have gone from around 3% to over 5% over the past year. The combination of soaring prices and rising mortgage rates caused the typical monthly mortgage payment to hit $1,910 in March 2022, up from $1,423 in March 2021 and $1,280 in March 2020.

“Housing is significantly less affordable than it was a year ago as soaring housing costs have far outpaced rising wages, meaning many Americans are now homeless” , said Redfin’s deputy chief economist, Taylor Marr. “The good news is that there is also a positive side to rising mortgage rates: they will likely slow price growth and dampen competition for homes, providing some respite for some potential buyers.”

“There are many ways people can get around rising housing costs,” Marr continued. “The first and easiest is to just stay put, as monthly mortgage payments usually don’t change much. Buyers may also consider moving to a more affordable part of the country.

Pittsburgh buyers need to earn 16% more to afford a home – the smallest gain in the country

Although homes are less affordable than they were a year ago in every metro in Redfin’s analysis, homebuyers in parts of Pennsylvania and the Midwest have seen smaller gains in the income needed to buy a home. house than in other parts of the country.

Homebuyers in Pittsburgh need to earn $39,532 to pay the region’s median monthly mortgage payment of $988, up 16.3% from a year earlier. This is followed by Philadelphia ($49,068, up 17.1% year-over-year) and Chicago ($57,400, +18.2%). Milwaukee ($47,355, +20.4%) and Detroit ($30,737, +21.3%) round out the top five.

California homebuyers need the highest annual incomes to afford a home

Homebuyers in San Francisco need an annual income of $292,556 (+26.4% yoy) to afford a typical home, the highest of the metros in this analysis. It is followed by San Jose, Calif., where buyers need $288,852 (+34.7%) and Anaheim ($192,568, +39.8%). Homebuyers need to make at least $100,000 a year to afford an average home in 14 of the 50 metros in this analysis. Eight of those 14 are in California, and the others are in Boston, Denver, Nassau County, NY, New York, Portland, OR and Seattle.

Detroit is the most affordable metro for homebuyers. Cleveland ($35,181, +30.4% YoY) and Pittsburgh come next, followed by St. Louis ($41,661, +21.7%) and Milwaukee.

To read the full report, including methodology and additional data at the metropolitan level, please visit: https%3A%2F%2Fwww.redfin.com%2Fnews%2Fhomebuying-affordability-mars-2022%2F

About Redfin

Redfin(www.redfin.com) is a technology-driven real estate company. We help people find a home with brokerage, instant home buying (iBuying), rental, loan, title insurance, and home improvement services. We sell houses for more money and charge half the fees. We also run the #1 real estate brokerage site in the country. Our homebuyer clients see homes first with on-demand viewings, and our loan and title services help them close quickly. Customers selling a home can receive an instant cash offer from Redfin or have our renovation team repair their home to sell for the best price. Our rental business helps millions of people across the country find apartments and houses to rent. Since launching in 2006, we’ve saved our clients over $1 billion in commissions. We serve over 100 markets in the United States and Canada and employ over 6,000 people.

For more information or to contact a local Redfin estate agent, visit www.redfin.com. To learn more about housing market trends and download data, visit Redfin+Data+Center. To be added to Redfin’s press release mailing list, email [email protected]. To see Redfin’s press center, click+here.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220427005312/en/