Homeownership is hurtling out of reach
Zillow notes the median U.S. household income in 2020 was around $66,000 — enough for more than half of households to afford a home at the time. The report estimates a typical household nowadays earns $81,000, based on data from Moody’s Analytics and the federal government.
It seems the rising cost of homeownership has outpaced salary increases, with mortgage rates hovering at around 6.6%, while the typical home is now worth around $343,000, per the digital real-estate platform.
“Housing costs have soared over the past four years as drastic hikes in home prices, mortgage rates and rent growth far outpaced wage gains," Orphe Divounguy, a senior economist at Zillow, said in a press release.
"Buyers are getting creative to make a purchase pencil out, and long-distance movers are targeting less expensive and less competitive metros.”
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Learn MoreBuyers are getting creative
Despite the financial obstacles of purchasing a home, some buyers are pursuing homeownership through unconventional methods.
For example, some young Americans are partnering up with friends or relatives instead of going solo while purchasing a home.
Others are hedging their bets with “house hacking” — renting out all or part of their homes for some extra income to cover their housing costs.
There are also some platforms that let you invest in real estate and grow your money, without the headaches of becoming a landlord.
You could invest in shares of rental and vacation homes and start receiving rental income deposits each quarter.
Or, consider upping your game by investing in commercial real estate and own shares of institutional-quality properties leased by national brands like Whole Foods and Walmart.
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