Study says 40% of US households cannot afford to buy a home, need at least $108K salary

According to a new report by Oxford Economics, a staggering 40% of American households currently cannot afford to buy a home, with a minimum salary requirement of $108,000 to cover the costs of purchasing a new single-family residence. This figure represents a dramatic increase from 2019, when the income needed was significantly lower, highlighting a growing affordability crisis in the housing market. The need for this higher salary encompasses not only the purchase price of homes but also essential expenses such as property taxes and insurance. David Dworkin from the National Housing Conference emphasizes that addressing the supply-demand imbalance through the construction of more affordable housing is crucial to solving this issue. The findings of this study raise alarms about the economic pressures faced by middle-class families, who are increasingly priced out of the housing market.

As the gap between income levels and housing costs widens, the implications for homeownership and financial stability become more pronounced. The report calls for urgent action from policymakers to facilitate the development of affordable housing options. Such measures are essential for ensuring that homeownership remains attainable for future generations in the U. S.