States Where Home Values Outpaced Income GrowthBy RISMedia Staff
While many states saw significant growth in median household incomes, home values grew on average by more than 10 percentage points than incomes across the nation’s 50 states, according to a new report from LendingTree.
LendingTree analyzed how home values increased relative to incomes by observing U.S. Census Bureau American Community Survey data, comparing both variables from 2019-2021. The report found that on average, median home values increased by 17.36% from 2019-2021, while median household incomes grew by an average of 6.00%. That’s a difference of 11.36 percentage points. Key highlights:
"Unfortunately, even if home prices do decline somewhat in the near future, that doesn’t necessarily mean that housing will become more affordable. This is because mortgage rates are considerably higher than they were during the height of the pandemic,” said Jacob Channel, LendingTree's senior economist and author of the report. “Keep in mind that, owing to today’s rates of about 7%, a 30-year, fixed-rate mortgage worth $300,000 would end up costing a borrower more each month than a $450,000 mortgage with the same term would have cost at the average rate at the start of 2022 - 3.22%." For the full report, click here. |
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