The U.S. housing affordability crisis intensified recently, leading to the first decline in national homeownership rates since 2016. Home prices rose by nearly 4% year-over-year, reaching record highs that are unaffordable for the average American. The typical single-family home now costs $412,000, significantly exceeding the conventional price-to-income ratio of three. Many renters are unable to meet the income threshold necessary for typical mortgage payments, illustrating a deepening divide in housing access and affordability, especially in major metro areas like Los Angeles and Miami where ratios soar above 8.
Only three of the nation's 100 largest metros saw price-to-income ratios below 3, with many cities like Los Angeles and Miami exceeding a ratio of 8.
To afford the sky-high mortgage payment of $2,570, the typical buyer would need to earn at least $126,700 a year, but only 6 million renters do.
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