Home value growth surpassed median salaries in 25 of 38 U.S. metros tracked by Zillow in 2021, compared to just five metro areas where home value appreciation outpaced median income in 2020, CNBC reports. Housing prices are showing no signs of decelerating as rising mortgage rates and tight supply sustain heated competition and keep affordability out of reach.
San Jose, California reported the highest median income of $93,000 along with the highest home value growth, reaching $229,277 in 2021, and other California metros like San Francisco saw similar home value growth to income ratios.
“Those who owned a home saw their household wealth increase dramatically. But many renters witnessed that dream either soar out of reach or had to drastically adjust their expectations and plans,” said Zillow economist Nicole Bachaud in a press release.
Detroit and St. Louis were among the cities with the lowest home value growth to income ratio.
Metro areas also saw a rise in rents, up 16% from the previous year. The growth was even bigger in Sun Belt cities like Miami and Phoenix, where rents surged 25%, according to Zillow.
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