Five Times the Income: Why Homes Are Pricier Than Ever

Homes that once cost 3x household income now average 5x nationwide—and in places like San Jose, that ratio hits 12.5x. Tim Lucas and Craig Berry break down how we got here, what it means for buyers, and why the gap between homeowners and renters keeps widening.In this episode you’ll learn:The affordability shift: A family earning $100K could once afford a $320K home—today, that same family needs $500K, pushing payments from $2,600 → $4,000.The wealth divide: U.S. homeowners now hold $36 trillion in equity, with 3 in 5 owners having $100K+ in tappable equity.Who’s left behind: Younger buyers face rising rates, high down payments, and delayed entry—average first-time buyer age now 40.Equity feedback loop: Wealthy owners tap home equity for investments, driving prices even higher.The broader impact: From shrinking affordability to delayed families and new migration patterns, housing costs are reshaping American life.Read the full article:https://www.mortgageresearch.com/articles/home-prices-five-times-average-household-income/