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. 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.

About the author

Phil Hall

Link copied

Published

Jan 30, 2019

Industry News

Newfi And Addy AI Announce Partnership

Newfi and Addy AI today announced a collaboration focused on the continued evolution of artificial intelligence in mortgage lending

Newfi and Addy AI today announced a collaboration focused on the continued evolution of artificial intelligence in mortgage lending.Newfi has built innovative lending products and a modern approach to the mortgage market. As the industry evolves, the company continues to exp...

Analysis and Data

Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Homebuyers are putting less money down than they were a year ago, another sign that increased inventory and greater negotiating room are changing the purchase market.The typical down payment fell to $27,100 in the second quarter of 2026, the lowest second-quarter dollar amou...

Nov

Pasadena, CA

More from

Industry News

CHLA: More Freddie Mac MBS Buying Could Narrow Mortgage Spreads

Trade group estimates greater Freddie participation could compress spreads another 10 to 12 basis points as Fannie has taken the lead in GSE mortgage-bond buying

Industry News

Sep 23, 2026

Early Loan-Limit Race Splits Into Three Tiers

Lenders are now offering $845,000, $847,440, or $850,000 before FHFA sets the official 2027 limits

Industry News

Sep 23, 2026

Better, Garg Clash Over Claimed 46% Shareholder Support

Better disputes its former CEO’s preliminary consent count as the two sides trade accusations and an Oct. 2 target date approaches

C-Suite Strategies

Sep 23, 2026

Fannie Changes How Rent From A Former Home Counts

Fannie now prohibits leases for departing residences and permits market-analysis tools instead of Form 1007, creating a key documentation difference from Freddie Mac

Regulation and Compliance

Sep 22, 2026

MPF Expands Eligibility For Manufactured And Renovation Loans

The Mortgage Partnership Finance Program has expanded MPF Traditional eligibility for affordable loans, manufactured homes, renovations, and lender-funded assistance

Industry News

Sep 22, 2026