The average income of new homebuyers has increased drastically since the Covid pandemic and has surpassed six figures, according to an NBC News analysis of data from the U.S. Census Bureau. Experts say this is a harbinger of economic difficulties. The shift reflects the reality of the current real estate market, where even potential buyers with six-figure salaries can struggle.
New homebuying families earned an average income of $110,000 in 2023, according to the NBC News analysis, with buyers aged 40 or younger earning $114,000. Among these younger generations, the change is especially noticeable: new buyers now have higher incomes than those who already own homes.
As such, today’s homebuyer is not only equipped with good credit and a down payment; they are increasingly required to be among the highest earners in the United States.
Nationwide, the average income is nearly $81,000.
Rising incomes can fuel inflation as prices follow suit, creating an inflationary cycle. And the effects go beyond the economy: those who are priced out of the housing market become part of a growing class of renters.
Source: NBC News