Why It's Hard To Break Into The Housing Market Right Now

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Why It's Hard To Break Into The Housing Market Right Now
The average household should shoot for a home around $200,000. Except that’s half of what they’re going for these days, on average.

Think you’re ready to buy a home? It could cost you around $425,000. 

The median home price reached an all-time high in April, according to realtor.com.  

And the price tag is way out of reach for millions of Americans.  

The average household income in America is just over $67,000.  

If you follow the advice of conventional financial planners, you shouldn’t buy a home worth more than three times your salary.  

That means the average household should shoot for a home around $200,000.  

Except that’s half of what they’re going for these days, on average.

But it’s not because there’s a shortage of buyers. There just aren’t enough homes up for grabs.  

And it's shutting a staggering number of Americans out of the market.

Homeownership is a crucial tool for building wealth, and creating a more equitable and sustainable housing landscape. 

But the Urban Institute, an economic and social policy think tank, says if the situation doesn’t improve, the homeownership rate will tank — especially among younger people and Black Americans.  

We wanted to find out why.