Rising home prices are exciting for homeowners who can see their wealth increase without raising a finger. A new survey by Zillow found that house price increases in 25 metro areas last year exceeded average wages in those locations.
Nationally, the median house was valued at $ 52,667 in 2021, $ 2,667 more than the median salary of $ 50,000.
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The top 10 markets, including the widening gap between home price increases and the average wage, include San Jose, San Francisco, San Diego, Honolulu, Los Angeles, Boise, Seattle, Salt Lake City, Phoenix and Riverside, Calif.
In some markets, wages tend to exceed the value of residential real estate. In the DC area, the median home price was $ 56,163, while the median wage was $ 75,000 in 2021, চেয়ে 18,837 more than the home price increase.
Other markets where average wage home prices were higher than Chicago, Houston, Philadelphia, Baltimore, Detroit, Minneapolis, St. Louis, Oklahoma City, Birmingham, Omaha, New Orleans and Kansas City (Missouri and Kansas) are among the markets.
Detroit, St. Louis and Baltimore are the markets with the lowest home price increases compared to the average salary in 2021. However, in St. Louis, which had the smallest home price increase among the 38 markets analyzed, the average home price increased by $ 27,000.
For tenants and home buyers, rent increases and rapid price increases are less than pink news. Nationally, between December 2020 and December 2021, annual rent payments increased by more than $ 3,000, and intermediate down payments increased by more than 10,000, according to Jill.
Rents in the U.S. rose 16 percent in 2021, and in some markets, such as Miami, Phoenix and Las Vegas, rents rose more than 25 percent a year. The average annual rent in Miami rose to 7,104, িক 4,644 in Phoenix and $ 4,380 in Las Vegas. Rising rents make it more difficult to save for a down payment.
Since down payments are usually a percentage of the purchase price, the amount required for down payments has increased with the price of the house, which has made home ownership even more out of the reach of some tenants.