Cost hikes last year priced out nearly one million renters from the ranks of homeowners, according to a recent REALTORS study.
The income a household needs to pay a mortgage for a median-priced home rose in 2021 to $62,872, up from $55,186 in 2020. That figure stems from the calculation of income a household needs to pay the mortgage affordably so that monthly mortgage payments with interest do not exceed 25% of income.
The home price hike makes it more difficult for many renters to qualify for home loans. The median existing-home sales price averaged $345,442 in 2021, a 16.4% increase from the median sales price of $296,700 in 2020.
Based on the above figures, the National Association of Realtors estimated that the number of renter households who can pay the mortgage affordably in the U.S. declined from 8.75 million to 7.71 million.
Related Stories
Codes and Standards | May 30, 2018
Silicon Valley cities considering taxes aimed at large employers
The aim is to offset the impact on housing costs and homelessness by tech companies.
Codes and Standards | May 30, 2018
OSHA proposes new crane operator safety rule
Would provide long-term clarity on certification requirements.
Codes and Standards | May 29, 2018
Government support helping to drive demand for green building materials
Market projects to grow 12.5% annually between 2013 and 2019.
Codes and Standards | May 24, 2018
‘Amazon tax’ could slow Seattle’s construction boom
City imposes employer head count tax to fund affordable housing.
Codes and Standards | May 23, 2018
AAMA releases 2017/2018 fenestration market studies
Offers forecasts of industry trends.
Codes and Standards | May 22, 2018
Registration open for 2018 National Energy Codes Conference
U.S. Department of Energy event to be held July 15th-17th in Austin.
Codes and Standards | May 21, 2018
New standard tests quietness of floors
ASTM International method will help manufacturers test their flooring materials.
Codes and Standards | May 17, 2018
California will require solar panels on most new homes
Projected to add $10,000 to cost of new homes.
Codes and Standards | May 16, 2018
New resources offer tips on off-site construction
NIBS documents address using pre-cast concrete, and commercial and legal considerations of modular construction.
Codes and Standards | May 15, 2018
Blast testing of loaded mass timber structures yields positive results
Four tests covered a spectrum of blast loads.
