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.