Skip to main content

More Than One-Third of Homebuyers Earn More Than $100K

Jan 30, 2019
Today’s average homebuyer earns more than 62.7 percent of all households, up from 59.8 percent in 2012, according to new data from Zillow

Today’s average homebuyer earns more than 62.7 percent of all households, up from 59.8 percent in 2012, according to new data from Zillow. However, the value of a typical home is now greater than half of an entire year’s median income.
 
Zillow noted that seven years ago, only five of the 35 largest metro areas—Boston, New York City, San Francisco, San Jose and Washington, D.C.—had a majority of homebuyers making more than $100,000 a year. Five years later, six more markets joined this group: Dallas, Denver, Los Angeles, Portland and Seattle. In 2012, only 30.4 percent of homebuying households made more than $100,000, whereas that share increased to 38 percent within five years.
 
However, the share of homebuyers earning less than $50,000 fell from 35.5 percent to 27.8 percent between 2012 and 2017, while the share of buyers earning from $50,000 to $100,000, remained unchanged at 34.1 percent. And Zillow noted the disconnect between home values and household incomes became greater: Home values climbed by 50 percent over the past seven years, but household incomes inched up by only 11.3 percent. Thus, the ratio of home values to incomes increased from 2.96 in the third quarter of 2011 to 3.5 in the third quarter of 2018.
Today’s average homebuyer earns more than 62.7 percent of all households, up from 59.8 percent in 2012, according to new data from Zillow

 
About the author
Published
Jan 30, 2019
More Communication, Earlier, Homebuyers Plead

It takes more than just 'fast and fancy' to please mortgage borrowers, according to the latest J.D. Power study

Nov 12, 2024
NAR's Yun Predicts 6-8 Rate Cuts Over Next Two Years

The NAR Chief Economist offers a blended forecast for 2025 and 2026

Nov 11, 2024
Joint Ventures Amp Up, loanDepot Partners With Smith Douglas Homes

The joint venture, Ridgeland Mortgage, combines new home construction with a mortgage lending platform

Nov 11, 2024
FED Cuts Funds Rate By 25 bps

Federal funds rate lowered to a target range of 4.50%-4.75%.

Nov 07, 2024
UWM Profits Decline Sharply In Q3 2024

UWM CEO Ishbia says the declining fair value of MSRs had an impact

Nov 07, 2024
Early Voters Flag U.S. Economy As Top Issue

More Americans think mortgage rates will fall if Trump wins

Nov 04, 2024