09/05/2021
To properly afford a home at 99,000 you would need to make $3,484 per month or 41,808 per year while financing at 3% apr over 15 years with 20% down and pay $871 per month. If you want to stretch yourself thin with a 30 year mortgage you would pay $658 per month with the same 20% down with 3% apr, which puts you at a yearly income of only $31,584. Now let’s say you wanted to buy an average home in this market which goes for around $350,000, you would need to make $10,000 per month or $120,000 per year to afford a 15 year mortgage at 3% and that’s with $70,000 down. Now keep in mind this is without any HOA fees priced into these monthly payments, and some HOA fees can be up to $600 per month on top of your mortgage payment. $30,000 to $40,000 per year is the average income for some people while few others make over $100,000 per year. According to data from the US Census Bureau 38% of all households made over $100,000 in 2018. The Median Household Income is $78,646 and the Mean is $106,000 per year. This means on average a single person makes around $50,000 per year before taxes, respectively they net around $37,500 which puts you in the lower tier of home buyers in this market. The average (mean) household yearly income for Male Households with no spouse present in the United States is less than $100k. For Male Households with no spouse present, 20% make more than 100k. For Female Households with no spouse present 13% make more than $100k. The Mean Household Income for Female Households with no spouse present is $55,190. The Median Household income for female households is $40,233. What this boiled down to is that only about 33% of Americans can afford an average home and the rest are getting priced out by big corporate cash buyers who turn a profit with single family rentals.
