Des Moines locals have to earn 30% more than a year ago to afford the region’s median-value home, per the latest analysis by real estate company Redfin.
The big picture: The income needed to afford a home has soared as limited inventory and strong demand drove up sale prices, and surging mortgage rates have made home loans more expensive.
Why it matters: Wages and salaries are not increasing at that pace, further constricting entry into the housing market for many people.
Data: Redfin; Table: Thomas Oide/Axios
By the numbers: In March 2021, you had to earn at least $38,036 to afford the median home for sale in the Des Moines metro area, Redfin found.
- This March, you needed to make $49,438.
- For a median sales price home of $267,000, a monthly mortgage, with 5% down, jumped from $951 to $1,236, per Redfin.
Of note: A monthly mortgage payment is considered affordable if the homebuyer spends no more than 30% of their income on housing.
Meanwhile, wages grew 5% nationwide over the same period, according to the Bureau of Labor and Statistics.
- Median household income in the Des Moines metro is $71,734, shows newly released census data for 2016-2020.
Zoom out: Across the U.S., buyers need 34% more income to afford a home, Redfin found.
Source: https://www.axios.com/local/des-moines/2022/05/27/des-moines-median-home-prices-income