U.S. Home Prices Have Surpassed Income Growth by a Large Margin Since 1980
U.S. home prices have increased 551% since 1980, compared to a 373% rise in median household income, resulting in a home-price-to-income ratio of 5.08, nearly double the recommended maximum of 2.6. This has made housing unaffordable in all major U.S. cities, with home prices outpacing income growth by nearly 1.5 times in the five years following the onset of the COVID-19 pandemic.
Topics: affordability home price-to-income ratio housing affordability income growth real estate market