Home affordability continues to be a concern for many Americans, and a new Zillow analysis shows that buyers need at least a $17,000 raise in order to afford mortgage payments.
According to the new data, a buyer looking to purchase a typical American home (worth about $368,000) would need to make nearly $100,000 a year. They would have to have more than $73,000 saved for a 20% down payment.
If a buyer only has enough for a 10% down payment, they’d have to have a pay increase of more than $36,000 to afford the mortgage payments.
Still, Zillow data shows “the housing market is friendlier for buyers this spring than in any spring since before the pandemic.” This is due to higher inventory, lower list prices, and other factors.
