Cost hikes last year priced out nearly one million renters from the ranks of homeowners, according to a recent REALTORS study.
The income a household needs to pay a mortgage for a median-priced home rose in 2021 to $62,872, up from $55,186 in 2020. That figure stems from the calculation of income a household needs to pay the mortgage affordably so that monthly mortgage payments with interest do not exceed 25% of income.
The home price hike makes it more difficult for many renters to qualify for home loans. The median existing-home sales price averaged $345,442 in 2021, a 16.4% increase from the median sales price of $296,700 in 2020.
Based on the above figures, the National Association of Realtors estimated that the number of renter households who can pay the mortgage affordably in the U.S. declined from 8.75 million to 7.71 million.
Related Stories
Codes and Standards | Jun 21, 2021
Vancouver, B.C., may delay new zero emissions building standards
Building permit delays may postpone new standards by a year.
Codes and Standards | Jun 17, 2021
Buffalo’s parking reform having noticeable impact on development
Elimination of mandatory parking allotments encourages new projects.
Codes and Standards | Jun 16, 2021
Inconsistent building codes make some states more vulnerable to hurricanes
Florida takes top spot for strongest building code in latest IBHS survey.
Codes and Standards | Jun 15, 2021
Growing housing supply gap will worsen affordability crisis
Supply projected to fall 4.5 million units short in 2022.
Codes and Standards | Jun 15, 2021
Florida will allow virtual inspections, building code enforcement, permit issuance
New law will go into effect on July 1, 2021.
Codes and Standards | Jun 10, 2021
New York City cracks down on construction site safety
Buildings Dept. issues new safety legislation for City Council consideration.
Codes and Standards | Jun 9, 2021
ASHRAE updates health care facility ventilation standard
Includes improved guidance on thermal comfort, revisions to air filtration requirements.
Codes and Standards | Jun 8, 2021
American Wood Council releases new fire design specification
For design of wood members, assemblies, and connections to meet code requirements.
Codes and Standards | Jun 7, 2021
Guide provides strategies to overcome barriers to sustainable affordable housing
International Living Future Institute document helps with social, regulatory, and financial hurdles.
Codes and Standards | Jun 3, 2021
Conversion of large office buildings to residential will require revamped regulations
Post-1960 offices present ventilation, daylighting, and other challenges.
