{"id":1530042,"date":"2025-04-12T21:30:00","date_gmt":"2025-04-13T01:30:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1530042"},"modified":"2025-04-12T21:30:00","modified_gmt":"2025-04-13T01:30:00","slug":"us-homeowners-must-earn-50000-more-than-renters-to-cover-shelter-payments-report","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/us-homeowners-must-earn-50000-more-than-renters-to-cover-shelter-payments-report\/1530042\/","title":{"rendered":"US Homeowners Must Earn $50,000 More Than Renters To Cover Shelter Payments: Report"},"content":{"rendered":"

US Homeowners Must Earn $50,000 More Than Renters To Cover Shelter Payments: Report<\/span><\/p>\n

\n

Authored by Naveen Athrappully via The Epoch Times,<\/em><\/a><\/p>\n

American homeowners need to earn about $50,000 more than the typical renter to be able to afford monthly mortgage payments, according to new data from real estate brokerage Redfin.<\/p>\n

\u201cAmericans need to earn $116,633 per year to afford the median-priced home for sale, 81.8 percent more than the $64,160 needed to afford the typical apartment for rent,\u201d<\/strong><\/em> Redfin said in an April 10 statement<\/a>.<\/p>\n

In 2024, a person looking to buy a typical U.S. home could do so with earnings of about $110,808, $5,825 lower than this year. The amount needed to rent remained about the same.<\/p>\n

<\/a><\/p>\n

According to the brokerage, a home is considered affordable when the homeowner spends no more than 30 percent of their income on the monthly housing payment.<\/strong><\/p>\n

Home prices have been going up at a swift pace with Freddie Mac<\/a>-backed 30-year fixed-rate mortgage rates remaining above the 6 percent level for all of 2024 and 2025.<\/p>\n

Redfin said an individual needed to earn just $63,925 to afford the typical home for sale in 2021. The latest data indicate an increase of more than 82 percent in the income required to purchase a home since then, based on current market conditions. The amount needed for a typical rental was then $54,520.<\/p>\n

Mortgage rates have been undergoing considerable fluctuations recently,<\/strong> with broader economic uncertainty following President Donald Trump\u2019s tariffs strategy to level the playing field for American exports.<\/p>\n

The implementation of reciprocal tariffs was announced on April 2.<\/p>\n

Rates jumped over the 7 percent level Friday, according to data<\/a> from aggregator Mortgage News Daily.<\/p>\n

The volatility in rates has been supported by corresponding movements in the U.S. Treasury bond yields.<\/p>\n

The 10-year treasury yield<\/a> has been on the increase since April 4, when it closed at 3.99 percent. As of April 11, it is at 4.50 percent.<\/strong><\/p>\n

Inflation Fears<\/h2>\n

When the 10-year Treasury yield increases, mortgage rates tend to follow. According to Mortgage News Daily, the yield saw its biggest week-over-week increase since 1981, indicating a subsequent uptick in mortgage rates, which have now crossed the 7 percent level.<\/strong><\/p>\n

Economic uncertainty has caused market turbulence<\/a> with investors worrying about a possible spike in inflation. This has resulted in bond prices falling. Bond prices have an inverse relationship to treasury yields. Hence, yields have risen, lifting mortgage rates.<\/p>\n

Defying market expectations, producer prices<\/a> registered an unexpected drop in March, suggesting a lower chance for increased inflation.<\/p>\n

The White House commended the inflation report in an April 10 statement<\/a>, stating that it was \u201cthe first drop in consumer prices in several years.\u201d<\/strong><\/p>\n

U.S. consumer optimism declined in April, according to the latest University of Michigan sentiment survey<\/a>. Inflation fears had risen to the highest level in more than four decades, owing mainly to tariff uncertainty and the falling stock and bond markets.<\/p>\n

Americans have been standing on the sidelines, unsure of making home purchases due to the persistently elevated mortgage rates.<\/strong><\/p>\n

<\/a><\/p>\n

When rates went down consecutively for three weeks<\/a>, the number of mortgage purchase applications went up.<\/p>\n

\u201cMortgage applications increased by 20 percent to its highest level since September 2024, driven by purchase and refinance applications picking up in a volatile week where economic uncertainty caused rates to drop across the board,\u201d <\/strong><\/em>Mortgage Bankers Association Vice President Joel Kan said in an April 9 statement.<\/p>\n

Home buying has been picking up pace in the United States since the start of April. As part of this, new property listings are rising.<\/strong><\/p>\n

\u201cTariffs are coming up for the first time. I hosted an open house over the weekend, and some of the younger buyers were concerned about how they\u2019re going to impact the housing market,\u201d <\/em><\/strong>Desiree Bourgeois, a Redfin Premier agent in Detroit, said<\/a> in an April 10 statement.<\/p>\n

“They\u2019re hearing the words \u2018tariffs\u2019 and \u2018recession,\u2019 and it\u2019s making them nervous that if they buy now, the value of their home will decline, <\/strong><\/em>and they don\u2019t know whether mortgage rates will go up or down. There\u2019s a lot of uncertainty out there, with buyers trying to understand how their purchase would fit into their personal finances and the broader economic puzzle.\u201d<\/p>\n

The median home sale price is $386,500, as of April 6, Redfin said, with the asking price at $426,910 and a monthly mortgage rate of $2,813.<\/p>\n

There were almost a million active market listings with 100,661 new listings.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nSat, 04\/12\/2025 – 17:30<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/personal-finance\/us-homeowners-must-earn-50000-more-renters-cover-shelter-payments-report<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

US Homeowners Must Earn $50,000 More Than Renters To Cover Shelter Payments: Report Authored by Naveen Athrappully via The Epoch Times, American homeowners need to…<\/p>\n","protected":false},"author":0,"featured_media":1530043,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1530042","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1530042","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1530042"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1530042\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1530043"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1530042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1530042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1530042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}