Although the Sun Belt remains relatively affordable compared to gateway markets, it’s gotten a lot more expensive to afford a house there, especially in the past year. Specifically, a buyer today needs 40% more income than they did a year ago to afford the typical monthly mortgage payment in that region of the country.
That’s according to Seattle-based Redfin Corp. (NASDAQ: RDFN), which analyzed how growing home prices and rising mortgage rates have changed how much a household shells out monthly for a mortgage. Across the U.S., homebuyers need 34% more income than they did one year ago to afford a house, according to Redfin.
Tampa, Florida, saw the biggest annual increase — 47.8% — of any metro area analyzed by Redfin. Buyers there need to earn $67,353 annually to afford the metro area’s typical monthly mortgage payment of $1,684, which is up $21,791 from the $45,562 needed a year ago.
