Americans need to earn more in order to afford a house.
To buy a median-priced home, Americans need to bring in $116,633 annually – about 5.3 percent more than they needed last year, according to a new report from real estate data firm Redfin.
It’s also about 82 percent more than a renter’s income. Last year, Americans needed to earn 73 percent more than renters to purchase a house, signaling a widening gap between renters and owners.
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Salt Lake City has experienced the biggest increase in the home buying premium among the metros Redfin studied – a 28–percentage-point year-over-year jump. Buyers there need to rake in $140,412 annually to buy a house, which is 134 percent more than the income required to rent.
In the areas where the premium rose the most this year, rents are falling. For instance, in Utah asking rents dropped roughly 8 percent year over year in February. This is the second largest drop among the studied regions.
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