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- US income earners must make $75,849 to afford a starter home, Redfin reported.
- That's an 87% jump from the how much a buyer needed to earn pre-COVID, in 2020.
- Affordability is starting to improve, as mortgage rates are slowly sliding this year.
US starter homes are now roughly half as affordable as in 2020, as buyers must now earn nearly twice as much to purchase the typical first-time property, Redfin reported.
In February 2020, a starter home required that a buyer earn $40,465 annually. But four years later, that figure now stands at $75,849, and represents an 87% jump.
Higher costs and a sharp upswing in mortgage rates account for the difference, Redfin said. Whereas the median starter home price was $169,000 in 2020, it's now ballooned to $240,000.