The latest update to our Home Ownership Affordability Monitor (HOAM) shows homeownership affordability declined by 1.5% from May to June, driven primarily by rising home prices although mortgage rates stayed the same in June at 6.8%.
Here are some additional insights from the latest update:
- In June, the median income household in the US, making $79,537 per year, needed to spend 47.7% of its income to own the median-priced existing home.
- The median home sales price ($401,667) increased by 1.7% in June from May and up 2.7% compared to a year ago. The current median sales price is the highest on record.
- The total monthly cost to own the median-priced home was $3,162 in June, a new record high. Monthly costs were up 1.6% from May and 2.4% from a year ago.
- To qualify to afford the median-priced home, a household would have to make $126,487 annually to keep monthly payments at 30% of income. This is 59% higher than the actual median income ($79,537).
- The non-principal and interest (non-P&I) component of the average monthly payment (i.e., taxes, property insurance, etc.) rose by 4.7% over the past year and up 1.3% since May.
- At $801 per month, non-P&I is the highest on record. The non-P&I component comprised 25.3% of the average monthly payment.
- Just over 84% of all metros in the US were considered unaffordable in June (i.e., the median-income household in the metro area would need to spend more than 30% of its annual income to afford the median priced home).
Use our interactive Home Ownership Affordability Monitor for more insights on national and local homeownership affordability trends. https://atlfed.org/4lDjo2L
