The typical homebuyer now needs to make $107,000 annually to afford the "typical" U.S. home according to a new report by Redfin.
That number is a 46% increase from one year ago. The average monthly mortgage payment is $2,682 according to the report citing that mortgage rates have more than doubled over the last 12 months. Mortgage rates began rising last year because of the pandemic home buying boom and rapid rise in prices.
"High rates are making buyers rethink their priorities, as many of them can no longer afford the home they want in the location they want," said Washington, D.C. Redfin agent Chelsea Traylor. "If you had a $900,000 budget a few months ago, rising rates mean it’s now around $700,000–and sellers aren’t dropping their prices enough to make up for the change. So buyers are searching further away from the city in more affordable areas or waiting for prices and/or rates to come down before making a move."
If you live in Florida or are looking to move to Florida, and want to buy a home it's important to note that mortgage payments across the Sunshine state have skyrocketed in recent years.
If Miami is your pick, homeowners need to earn $128,892 which is a 63.7% increase year over year.
Buyers in North Port will need to earn $131,535 annually to afford this city's monthly mortgage payment. This is a 73.9% increase from the $75,658 salary that was needed last year. The report cites North Port as the major U.S. city with the biggest percent increase.
Tampa homebuyers are looking at an annual salary of $101,682 in order to purchase a home here.
Homebuyers in Cape Coral will need to make at least $104,943 to live here.
A whopping $104,943 is needed for those looking to buy a home in this popular tourist destination.
Buyers will need to make $105,751 to buy a home in this area.
Jacksonville had a lower annual salary compared to other Florida metros needed for homebuyers with $97,651 needed to buy a home here.
West Palm Beach
Looking to move to West Palm Beach? You'll need to bring in at least $115,707 to live here.