Buying a home requires 50% more income than it did five years ago

Affording a new home has become significantly more challenging, with a typical household income requirement of $117,000 in 2025, up from $78,000 before the pandemic. This 50% increase contrasts with a 27% rise in wages. High home prices and mortgage rates are key factors, making it difficult for first-time buyers, who often rely on loans. Cash buyers dominate the market, pushing the average age of first-time buyers to 38. Home prices are projected to rise another 5% this year, while the rental market remains more affordable.