06/24/2026
🏡 Ouch. Homeownership has become a lot more expensive in just five years.
At the end of 2020, a typical buyer could purchase a home with a monthly mortgage payment of about $1,240. Today, with the median existing single-family home price around $409,000, a 3.5% down payment, and a 6.23% interest rate, that same mortgage payment is approximately $2,420 per month.
But that's only part of the story.
Once you add property taxes, homeowners insurance, maintenance, and other ownership costs, the total monthly housing expense climbs to roughly $3,120 per month.
To comfortably afford that payment, a household now needs an annual income of approximately $120,800.
Five years ago? About $68,700.
That's a 76% increase in the income needed to purchase a typical home.
It's no surprise that many buyers are feeling the pressure. Higher home prices, elevated interest rates, rising insurance premiums, and increasing property taxes have dramatically changed the affordability equation.