09/17/2026
"Homes and cars cost a lot more relative to our paychecks today than they did a couple of generations ago, and month-to-month carrying costs take up a bigger piece of the pie. However, mortgage rates and long-term equity growth still make owning a home one of the best hedges against rising rent."
Talking Points & Cheat Sheet
1. Home Prices vs. Paychecks
In 1968: A typical home cost about 3 times a family’s annual income.
Today: A typical home costs over 5 times a family’s annual income.
The Realtor Takeaway: Getting into the market takes more upfront planning and strategy than it used to, but locking in a fixed housing payment now protects you from endless rent increases.
2. Monthly Mortgage Payments
In 1968: The average mortgage payment took up about 20% to 23% of a household's income.
Today: The average mortgage payment takes up roughly 32% of a household's income.
The Realtor Takeaway: Budgeting is tighter today, so getting pre-approved early and looking closely at property taxes, HOA fees, and insurance is essential to finding a comfortable monthly payment.
3. Everything Else Costs More Too (The Car Example)
In 1968: A brand-new car ($2,800) cost about half of a single worker’s annual pay.
Today: An average new car (~$49,000) costs 60% of a full household's income—or almost 100% of an individual worker's income.
The Realtor Takeaway: Overall cost of living has squeezed buyer savings across the board, making smart budgeting for down payments and closing costs more crucial than ever.
