The difference between monthly mortgage payments and rents hasn't been this big since 2006

3/28/2023

The difference between monthly mortgage payments and rents hasn't been this big since 2006, around the peak of the housing bubble that led to the Great Financial Crisis.

The monthly payment for a newly purchased home at the end of 2022 was $1,176 more than apartment rent.

"Rapid home price appreciation in recent years coupled with rising interest rates has caused the monthly cost of homeownership to rise far more than both the cost of rent and other consumer goods," the National Multifamily Housing Council said.

In November, nationwide, households need six-figure incomes to comfortably afford the typical home for sale, according to a report by Redfin.

Last month, the nation’s home buyers needed to make about $107,000 annually, up from about $74,000 a year earlier, to afford a median-priced home, according to Redfin. That’s an increase of nearly 46%.

In the Philadelphia metropolitan area, the annual income needed to afford a home at the median sales price of $260,000 was about $70,000 last month, up from about $50,600 in October 2021. That’s a 38% increase.

Read more: https://unusualwhales.com/news/housing-affordability-in-the-us-is-near-all-time-lows-per-goldman-sachs

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