CHARLOTTE, N.C. — A new survey found that nearly 40% of U.S. homeowners couldn't afford to buy their home if they were in the market for a house today.
The survey, published by real estate agency Redfin, says almost 2 in 5 homeowners fear they wouldn't be able to purchase their current house if they were looking to buy in 2024.
For reference, the median home price at the beginning of 2019 was $313,000, according to Money.com. By the end of 2023, that jumped to more than $400,000.
If you're trying to figure out how much money you'd need to make to buy a starter home now, experts say your salary needs to be $120,000 a year.
In the meantime, the Federal Reserve opted to keep its interest rates at the highest they've been in over a decade. The Fed issued its decision in a statement after its latest meeting, at which it kept its key rate at a two-decade high of roughly 5.3%. Several hotter-than-expected reports on prices and economic growth have recently undercut the Fed’s belief that inflation was steadily easing. The combination of high interest rates and persistent inflation has also emerged as a potential threat to President Joe Biden’s re-election bid.
The Associated Press contributed to this report.
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