Sunday, May 19, 2024

Study finds that Tampa homebuyers must earn $103K to afford a home

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The Rising Cost of Homeownership in Tampa: Income Needed Increases by 17.3%

The cost of homeownership in Tampa is on the rise, with the income needed to afford a typical home jumping by 17.3% in just one year. According to a study by Redfin, prospective homebuyers in Tampa now need to earn at least $103,613 annually to keep their monthly mortgage payments under 30% of their income.

This increase in required income is reflective of a national trend, with the average income needed to afford a home in the U.S. now standing at $114,627. The median home sale price in Tampa is $379,900, with a median monthly mortgage payment of $2,590.

The study attributes these rising costs to a combination of high mortgage rates and escalating home prices. Despite a slight increase in hourly wages in 2023, household incomes are still lagging behind the income needed to purchase a home.

However, there is some hope for prospective buyers in the Tampa Bay area, particularly in cities like Lakeland, which have seen smaller increases in the income needed to afford a home. Redfin suggests that buyers consider alternative options such as condos or townhouses, or explore more affordable areas outside of major cities.

Overall, the study paints a challenging picture for Americans looking to buy a home, emphasizing the need for creative solutions and flexibility in the current housing market.

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