The average US home now requires a six-figure salary to afford, marking a significant increase compared to pre-pandemic levels, according to a study by Bankrate.

The study reveals that the average home buyer needs to earn over $110,000 annually to afford the median-priced home in 22 states. This represents a substantial jump from January 2020, when the average home buyer only needed to make approximately $75,000—a 46% increase.

During the same period, median home prices have surged from $290,000 to $412,000, marking a 42% increase. 

Jeff Ostrowski, Bankrate housing market analyst, identifies affordability as the primary challenge, attributing it to record-high home values. He emphasizes the difficulty of meeting down payment requirements and monthly payments, particularly as home prices continue to soar.

“Home values are near record highs, and if you want a house, you have little choice but to pay a high price,” said Ostrowski.

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