Being a homeowner doesn’t just mean you’re your own landlord – it also means you are creating a long-term impact on your wealth.
But just where is the average American landing when it comes to homeownership?
Zillow’s recently released survey found that the typical homebuyer earns more than 62.7% of all U.S. households. That’s up 59.8% since 2012.
This survey is drastically showing the measure of wealth inequality that is taking place throughout the country.
Why is this happening?
If you compare home pricing to income, you’ll see the differences.
Home values have increased 50% in the past seven years, while incomes have only jumped 11.3% from 2012 to 2017. In Zillow’s terms, “home values have raced ahead by more than half of an entire year’s median income.”
One positive thing to keep in mind: inventory. While it is still historically low, inventory is predicted to rise over the years. This should help home pricing and affordability.