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 | Apr 23, 2020
COVID-19 epidemic demonstrates value of flexible hospital space
Some rooms being repurposed for ICU care.
Codes and Standards | Apr 15, 2020
Embodied carbon footprint can be reduced by using conventional materials
High-SCM concrete, and cellulose and wood fiber insulation among the greener alternatives.
Coronavirus | Apr 13, 2020
COVID-19 alert: City conducts a 'virtual building inspection' to allow Starbucks and bank to open
Bothell, Wash., issues a certificate of occupancy to developer after inspecting the property online.
Codes and Standards | Apr 13, 2020
Design competition focuses on reducing urban heat island effect
Cool Abu Dhabi aims to transform urban life in the Middle East.
Codes and Standards | Apr 13, 2020
What building science says about reducing COVID-19 transmission
Impact of temperature and relative humidity is unclear.
Codes and Standards | Apr 9, 2020
Owners retrofitting properties, monitoring performance during epidemic
Covid-19 outbreak may lead employers to reevaluate office commitments.
Codes and Standards | Apr 7, 2020
Dept. of Labor publishes guidance on paid sick leave, expanded family and medical leave
Includes fact sheets for employees, employers, and a questions and answers document.
Codes and Standards | Apr 1, 2020
Standards and codes meetings halted, postponed
ASTM International cancels in-person standards meetings; DOE’s National Energy Codes Conference postponed.
Codes and Standards | Mar 26, 2020
Ransomware attack on Canadian contractor underscores need for cybersecurity
Victimized company Bird Construction has defense, law enforcement contracts.
Codes and Standards | Mar 23, 2020
Contractors should scrutinize contracts carefully amid Covid-19 crisis
Compliance with time-sensitive notice requirements and careful documentation required.
