Nashvillians need to make more money to buy a home

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.

Data: Redfin; Painting: Thomas Oide/Axios

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.

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