Nashvillians we must win 41.8% more than a year ago to afford the region’s median value home, according to the latest analysis from real estate firm Redfin.
The big picture: The income needed to afford a home has increased as growing demand and limited inventory continue to drive up selling prices.
- And rising mortgage rates also make borrowing more expensive.
Why is this important: Wages and salaries are not increasing at this rate, further limiting entry into the housing market for many people.
By the numbers: In March 2021, you had to make at least $56,155 to afford the median home for sale in the Nashville metro area, Redfin found.
- Now you need to bring in $79,618.
- For a median sale price of $429,990, a monthly mortgage with 5% down payment went from $1,404 to $1,990.
To note : A monthly mortgage payment is considered affordable if the buyer spends no more than 30% of their income on housing.
Meanwhile, wages rose 5% nationally over the same period, according to the Bureau of Labor and Statistics.
- The median pre-tax income in Nashville in 2021 was $50,000, according to a recent Zillow study.
Zoom out: In the United States, buyers need 34% more income to afford a home, Redfin found.