This shocking statistic is why so many people can’t buy a home today

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Americans almost believe that buying a home is a right of passage in adulthood.

Sadly, that dream is becoming much more difficult to achieve today thanks to Democrats’ economic policies.

And this shocking statistic is why so many people can’t buy a home today.

Homebuyers must make 80% more to buy a home today

A recent report released from Zillow found that homebuyers would need to bring home over $106,000 each year to comfortably afford a home.

That number represents an 80% increase, or $47,000 more per year from 2020.

Sadly, wages haven’t nearly kept up with inflation, as the median income has only risen approximately 23% in the same timeframe, according to the Zillow report.

The real estate firm and tech company said that right now, Pittsburgh, St. Louis, and Detroit were the only major metro areas where a household making $106,000 annually could reasonably afford a home.

More potential home buyers are asking for financial help from friends or family members to purchase a house today.

Some are even resorting to “house hacking,” which is when part or all of the home is rented out to a tenant for extra income.

Hannah Jones, senior economic analyst at Realtor.com, told Fox Business, “The rapid rise in the price of homeownership over the last 4 years has been discouraging” and that it has caused “many to drop out of the market altogether until conditions improve.”

The amount of money people must make to buy a home isn’t the only thing that has skyrocketed.

The Zillow report also found that the typical monthly mortgage payment in the U.S. has almost doubled, rising a whopping 96.4% to $2,188 since January 2020 – and that number is for people who put down 10% when they purchased the home.

Home values have also gone up, rising 42.4% since 2020.

More shocking figures emerge

A household in February 2020 would only need to make about $50,000 to purchase the average-priced home in the U.S., according to Jones.

Now, in February 2024, the minimum income is closer to $100,000, much higher than the national median household income.

There are also hidden costs that could be keeping potential homebuyers from moving forward, according to John Bostock, CEO of the national home improvement company Leaf Home.

He said, “What is also being missed is that property tax rates are going up, homeowners insurance rates are going up” and that some older homes will require buyers to “incur the cost of doing repairs.”

Bostock also noted that a decrease in skilled tradespeople will also cause the cost of home repairs to go up.

He mentioned that the “skilled labor that can fix those homes up to the standard that someone would want to live in, all under the umbrella of it being affordable,” can also be a hindrance for many potential homeowners.

According to the Bureau of Labor Statistics, there will be close to 151,400 job openings for construction laborers and helpers every year over the next decade.

Informed American will keep you up-to-date on any developments to this ongoing story.