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
Digital Twin | Dec 20, 2021
Groups ally to advance augmented reality and digital twin technology
AREA and Digital Twin Consortium to work on improving how technology components interoperate.
Codes and Standards | Dec 20, 2021
Tension rises in California over state’s push to build more housing
Attorney general hints at lawsuits against cities that don’t comply with zoning reform.
Codes and Standards | Dec 17, 2021
Tension rises in California over state’s push to build more housing
Attorney general hints at lawsuits against cities that don’t comply with zoning reform.
Codes and Standards | Dec 16, 2021
Home builders defeat proposed Oklahoma energy conservation code upgrade
Builders cite high home prices for opposition.
Codes and Standards | Dec 16, 2021
Laws and regulations complicate growth of community solar gardens
New projects stymied by utility resistance and legislative restrictions.
Codes and Standards | Dec 16, 2021
Property owners need systematic approach to GHG emissions reduction
Energy hog buildings at risk for becoming stranded assets.
Codes and Standards | Dec 15, 2021
Design problems now the primary cause of construction claims and disputes
More likely to occur due to more tight timescales imposed upon third parties engaged in design.
Codes and Standards | Dec 13, 2021
ABC releases guide to technology for improving safety performance
Provides details on how to identify, choose, and implement technology.
Codes and Standards | Dec 8, 2021
Construction industry is the top target for cyberattacks
Smart building tech is a new avenue for criminals.
Codes and Standards | Dec 8, 2021
Proposals to add more multifamily to Atlanta prompt drive for Buckhead to secede
City aims to increase housing as projections point to sharp population increase.