10/17/2024
Wondering why home ownership feels out of reach for many buyers today?
Here are some statistics I heard at this morning's economic update at the Iowa Association of Realtors conference. (Source is Dr. Lawrence Yun, National Association of Realtors)
- For over 20 years, from January 2000 to January 2021, the income required to buy a median priced home ranged from $30,000 to $60,000. By early 2023, it rose to over $100,000.
- Home prices in Iowa appreciated 41% since Covid
- Mortgage interest rates rose in 2023 and Dr. Yun predicts they will hover around 5.5-6.5% in the foreseeable future.
Even with statistics like these, it is worth moving from renting to owning in order to build wealth.
- From 2019 to 2024, the median net worth of homeowners grew from $295,500 to $415,000 while the median net worth of renters remained flat at approximately $10,000.
What do you think? Comment below.