CHARLOTTE, N.C. — Buying an affordable home seems more and more out of reach for millions of Americans, with 20% of aspiring homeowners believing they'll never be able to save enough to buy a house.
A new study shows buyers need a six-figure income to afford a typical home in nearly two dozen states. According to Bankrate, to buy a $402,000 home, your annual income needs to be nearly $111,000. That's up almost 50% since 2020, when people only needed an income of $76,000.
Experts blame a combination of high mortgage rates, rising home prices and a shortage of houses.
North Carolina and South Carolina haven't reached the six-figure threshold yet, but we're getting lose. To afford a typical home in North Carolina, you need an income of roughly $92,000. In South Carolina it's about $96,000.
For those trying to navigate the housing market, experts recommend that you don't rush into buying a home. Instead, consider options for renting. Also, don't try to time the housing marketing, meaning if you're ready to buy, then buy.
Also, experts say you should calculate how small changes in mortgage rates can impact your monthly payment ahead of time.
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