Updated
Updated · The Arizona Republic · Aug 12
Phoenix Homebuyers Need $118,462 Income to Afford Median Home as Only 26% of Listings Qualify
Updated
Updated · The Arizona Republic · Aug 12

Phoenix Homebuyers Need $118,462 Income to Afford Median Home as Only 26% of Listings Qualify

1 articles · Updated · The Arizona Republic · Aug 12

Summary

  • $118,462 a year is the income Redfin says a household needs to afford a median-priced home in metro Phoenix, with that buyer still spending 37% of monthly income on a mortgage.
  • That threshold is 2% lower than a year ago, but it remains above Redfin’s affordability benchmark, which assumes buyers spend no more than 30% of income and put 15% down.
  • Only 26% of homes listed in metro Phoenix are affordable at that income level, showing buyers have some options but still face a tight market.
  • Nationally, households need about $110,000 to afford a median-priced home, while the typical household earns $87,599 and would have to devote 38% of income to a mortgage.
  • The national affordability gap has narrowed to $22,197 from $28,834 two years ago as wages and home prices have risen at similar rates, though affordability remains near record highs.

Insights

If average incomes fall $22,000 short of mortgage needs, is the traditional 30-percent affordability rule now completely obsolete for Americans?
With Phoenix sellers offering massive concessions, could hidden climate costs actually make buying there a financial trap for new homeowners?
As starter home affordability improves, are wealthy buyers secretly pushing middle-class families out of the broader U.S. housing market forever?