Want to buy a house now? Here’s How Much Money You Need

Evidence continues to pile up that buying a home has become too expensive, leading some to believe that the American Dream of homeownership is slipping away.

Exhibit A is a new study from Redfin stating that US homebuyers need an income of $107,281 to purchase a typical home. The report also noted the median monthly payment for a new home is $2,682, as of October 2022.

“The income required to buy a home then skyrocketed in 2022 as mortgage rates rose at their fastest pace in history, reaching 7% by the end of October (up from 3% in January),” The study noted. “Home prices also continued to increase for much of the year, although they’ve now started declining from their peak and year-over-year growth has now slowed to around 3%.”

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