Coronavirus

Millions of Americans Are Moving to the Suburbs. Here's How Much You Need to Earn to Buy a House

Wang Ying | Xinhua News Agency | Getty Images
  • Millions of Americans decided to move from the city to the suburbs over the past year.
  • Here's a look at how much you need to earn to afford the average home in each state.

As the country went under lockdown, Americans were on the move.

Over the last year, 1 in 20 adults moved from where they were living either permanently or temporarily due to the coronavirus outbreak, according to a recent report by the Pew Research Center.

Most cited financial reasons for relocating, followed by a job loss and wanting to be closer to family. Some said they needed more space or were able to work remotely during the pandemic.

For the most part, Covid has encouraged potential buyers to move from city apartments to suburban homes, driving up home prices nearly across the board.

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The pandemic-induced run on housing has fueled an affordability problem for many would-be buyers, despite mortgage rates near the lowest levels ever. Now, homes in many states require a salary larger than buyers' current median income.

Here's a look at just how much money it takes to afford the average home in each state, according to career planning site Zippia.com. Nationwide, the median home price is $346,800.

Price appreciation is now outpacing wage appreciation in 90% of housing markets nationally, according to a separate report from Attom Data Solutions, a property database.

The median prices of single-family homes and condos are less affordable than historical averages in 63% of U.S. counties, up from 54% a year ago, the report found, based on the income needed to make monthly mortgage, property tax and insurance payments on a median-priced home with a 20% down payment. 

To help address the national affordability crisis, President Joe Biden proposed a $15,000 first-time homebuyer tax credit, which could help with a down payment.

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