Clever report reveals steep income requirement for median-priced homes by 2024

Real estate data company Clever has revealed that first-time buyers must earn over $100,00 a year on average to comfortably afford a median-priced home in 2024, with a down payment of 10%, interest rate of 7.22% and a repayment period of 30 years. This is approximately $45,00 more than the typical household income annually. The analysis found that only six out of fifty major metropolitan areas are affordable for median earners with a down payment of 20%. Los Angeles was identified as being least affordable due to its high home prices and low incomes compared to what is required to afford them, while Pittsburgh emerged as the most affordable city for buyers. The report also highlighted that if mortgage rates dropped by two percentage points tomorrow, it would allow households to purchase a house worth $300,00 more than they could currently afford due to high interest rate costs. However, real estate experts warn against waiting for lower mortgage rates before purchasing as property prices continue to increase in value on average over time.