Sun Belt Buyers Need 40% More Income to Afford a Home

At the start of the pandemic, remote workers and migrating homebuyers flocked to the Sun Belt to settle in some of the nation’s most popular vacation destinations, but year-over-year home prices and monthly mortgage payments in the top sunny markets are now skyrocketing. Monthly mortgage payments in Tampa, Florida are up 47.8% from 2021, while homebuyers in Phoenix must earn $87,026 to afford the area’s typical monthly mortgage payment of $2,176, a 45.7% gain from a year earlier, Redfin reports.

The national median home-sale price rose 17% year-over-year in March to a record high of $412,700, and the number of homes for sale dropped 13% to an all-time low. Meanwhile, the average monthly mortgage payment reached $1,910 in March 2022, up from $1,423 in March 2021 and $1,280 in March 2020.

“Housing is significantly less affordable than it was a year ago because the surge in housing costs has far outpaced the increase in wages, meaning many Americans are now priced out of homeownership,” said Redfin Deputy Chief Economist Taylor Marr. “The good news is that there’s a positive side to rising mortgage rates, too: They will likely slow price growth and curb competition for homes, providing a reprieve for some prospective buyers.” 

“There are a few ways for people to get around rising housing costs,” Marr continued. “The first and easiest is to simply stay put, as monthly mortgage payments typically don’t change much. Buyers can also consider relocating to a more affordable part of the country.” 

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