I’ve been receiving a lot of questions lately from first time home buyers about how much income is needed to purchase a typical home. So today, I’ve prepared some insights that will answer that question. Keep in mind, these are average numbers and everyone’s situation is different. I’m happy to answer any questions specific to your situation.

Table of Contents

• National Housing Affordability

• Utah Housing Affordability

• What This Means For You

National Housing Affordability

Over the past five years, we've seen significant changes in the housing market across the United States. The income needed to purchase a typical U.S. home has increased by 79% since 2019. This shift has been driven by a combination of rising home prices and higher mortgage rates.

Key Factors at Play:

1. Home Prices: The median home price in the U.S. has risen from $279,000 in 2019 to $402,000 in 2024.

2. Mortgage Rates: We've seen rates climb from historic lows of around 3% to over 6%.

Utah Housing Affordability

While these numbers reflect national trends, Utah's market has its own unique characteristics. Our state continues to be an attractive place to live, with a strong economy, job growth, low poverty rates, and beautiful landscapes. With Utah’s 35,000 housing shortage, demand continues to rise, and the household income needed to afford a typical home is reflected below:

What This Means For You

It’s not all bad news. Utah remains one of the greatest places to live with a balance between high paying jobs, low poverty rates, and high homeownership rates. Utah led the country last year with the highest GDP percentage growth of any state. There’s a reason why people love living here. For an in-depth review on Utah’s economy, review a previous post I made about What’s Happening with Utah’s Economy by clicking here. 👈

Homeownership remains a powerful way to build wealth and stability. Many current homeowners have seen significant equity gains, which can be leveraged for future moves or investments, and there are still plenty of great deals to be found right now with sellers offering to pay closing costs, and mortgage rate buy-downs.

Whether you're looking to buy, sell, or simply understand your options, I'm here to help navigate these market conditions. If you’re ready to take the next step in your real estate journey, let's have a quick phone call to discuss your goals and how we can achieve them in today's market. Looking forward to hearing from you soon!

Here to serve,