WASHINGTON — Owning a piece of the American Dream now requires at least a six-figure salary in most cities.
A recent report from Oxford Economics finds families must earn at least $108,000 dollars in order to afford a new single-family home, plus pay property taxes and insurance costs. Researchers say that is nearly double the household income potential buyers needed in 2019.
According to the report’s authors, less than 40% of U.S. households make enough money to afford a new home.
While home prices rose in every city, the location makes a big difference in affordability.
[DOWNLOAD: Free WSB-TV News app for alerts as news breaks]
TRENDING STORIES:
- Lawmakers debate bump stock ban in Washington after Supreme Court struck down rule this summer
- Georgia lawmaker proposes $1 million liability insurance for assault weapon owners
- Lake Lanier boaters report algal blooms, association warns swimmers to avoid the water
Experts said the increase in prices are due to several factors, including a shortage of homes and increase in demand for buyers.
Rising mortgage rates have also contributed to the affordability crisis.
“This is a supply-driven crisis,” David Dworkin, from the National Housing Conference, told Channel 2 Washington Correspondent Nicole D’Antonio. “The only way we are going to deal with the increase in rents that I know people are suffering with is going to be to build more supply. The law of supply and demand is never repealed, and the answer is building more affordable housing.”
Efforts on Capitol Hill continue to work on addressing the current housing crisis in America.
Dworkin said there’s still work to do to fix the issue.
“For a long time, housing has been a bipartisan issue, it never does well when it’s politicized,” Dworkin said. “We need to go back to first principles and recognize that if we build quality affordable housing, it’s good for everyone.”
[SIGN UP: WSB-TV Daily Headlines Newsletter]