--- title: Many Homeowners Couldn't Afford Their Current House at Today's Prices description: In a new survey, 38% of homeowners say they could not afford to buy the houses they currently live in at today's prices. authors: - name: Brenden Rearick role: Reporter url: https://money.com/author/brenden-rearick/ bio: Brenden Rearick is a former news reporter at Money who specialized in mortgages, real estate, and personal finance topics. education: University of Pittsburgh, BA at_money_since: 2023 articles: 133 covers: - Housing - Banking - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology former_staff: true editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. education: University of Florida at_money_since: 2018 articles: 453 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum published: '2024-04-23T20:28:49.000Z' modified: '2024-04-23T20:28:49.000Z' section: Housing tags: - News word_count: 598 canonical: https://money.com/home-prices-unaffordable-today/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Illustration of house-shaped balloons getting away from their owner.](https://img.money.com/2024/04/News-Homeowners-Afford-Current-Price.jpg) At this point, it's common knowledge that many Americans are having difficulties affording new houses. In fact, the housing market has become so challenging that even existing homeowners can sympathize, as many say they wouldn't be able to afford their own home if they had to buy it today. In a new survey, nearly 2 out of every 5 homeowners say they couldn't afford their house at today's prices. And while this might be a good thing for owners for whom real estate is a store of value, it also speaks to the state of the market that buyers now find themselves in. ## Shopping for a new home? Find out how much you can afford today. ### Mortgage Experts at Rocket Mortgage (NMLS #3030) are available to get you started on your home-buying journey with solid advice and priceless information. To find out more, click on your state today. [View Rates](https://money.com/pr/u1bd42af4e5f?ap_referrer=%2Fhome-prices-unaffordable-today%2F) According to [survey results](https://www.redfin.com/news/survey-homeowners-afford-own-home/) released Tuesday by real estate company Redfin, 38% of homeowners say they probably or definitely could not afford to buy the homes they live in at today's prices. A majority of homeowners surveyed have owned their homes for at least five years. For reference, the median sales price of a home at the beginning of 2019 was $313,000. By the end of 2023, the most recent date for which the Federal Reserve Bank of St. Louis has data, the median sales price had increased by over $100,000 to $417,700. In the last decade, the housing market has seen explosive growth. Record-low interest rates at the onset of the pandemic allowed many homebuyers the opportunity to purchase a house with [mortgage rates](https://money.com/current-mortgage-rates/) under 3%; however, post-COVID-19 inflation led the Federal Reserve to get involved. Eleven consecutive times indirectly caused mortgage rates to surge and homeowners to hunker down, giving way to an inventory crunch. Interest rates are now presumably at their peak, but Fed officials have remained unclear on the timing of their first cut. In the meantime, the much-higher, near-8% mortgage rates plaguing the real estate market right now are likely to stick around. Simultaneously to the swift pivot in mortgage rates, home values have been spiking. Home sale prices over the last 10 years have doubled, according to Redfin, and have climbed about 50% since 2019. Not only do potential buyers have to clear the barrier of high mortgage interest, they also have to reckon with home prices remaining near record highs. This reality is unlikely to reverse anytime soon, too, with the Fed continually pushing back its first rate cut and Fannie Mae predicting a 4.8% [home price increase](https://www.fanniemae.com/research-and-insights/forecast/economic-developments-april-2024) by the end of 2024. ## There's never been a better time to buy a home. ### Mortgage Experts at Rocket Mortgage (NMLS #3030) can help you get there. Click below and request your free quote today. [View Rates](https://money.com/pr/u684f5a57ccd?ap_referrer=%2Fhome-prices-unaffordable-today%2F) ## First-time homebuyers need a $120K salary to afford a house As the [cost of homebuying](https://money.com/cost-of-buying-house-record-high/) climbs, first-time buyers need a six-figure salary to purchase the average home. Research released Monday from real estate company Clever finds that with a 10% down payment, buyers [need to earn nearly $120,000](https://listwithclever.com/research/how-much-house-can-i-afford-2024/?utm_source=press+release&utm_medium=pr&utm_campaign=salary_2024) to afford a median-priced home. The company explains that most first-time buyers nowadays are paying less than 10% down on a home, as compared to the 19% average down payment by repeat buyers. In order to comfortably afford a median-priced home, a first-time buyer paying 10% down with a mortgage rate of 7.2% (the current 30-year mortgage rate) needs to earn an income of $119,769 annually. But even with a 20% down payment, which would lower the monthly cost, the average American is still unable to afford a home in most places. Median earners — those making $74,755 — paying down 20% of a home's value can only comfortably buy homes in four U.S. states and six of the 50 largest cities. ![](https://s3.consumersadvocate.org/prd/image/image/26681/medium_57f09f10-efb8-487d-a73e-5f7d605144eb.png) Imagine finally owning your dream home — Rocket Mortgage (NMLS #3030) can help! 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