As housing costs continue to soar across the United States, the dream of homeownership is slipping further and further out of reach for the average American. A recent report from the National Low Income Housing Coalition found that the typical hourly wage needed to afford a modest one-bedroom rental is now .67 – over three times the federal minimum wage.

But the situation has only grown more dire in 2024, with real estate experts warning that the typical home buyer now needs to earn a staggering $120,000 per year to qualify for a median-priced home.[1] This marks a dramatic increase from just a decade ago, when the income threshold was around $60,000.

“The old American dream has essentially died,” said one prominent realtor. “Homeownership is quickly becoming out of reach for all but the highest earners in our society.”[1]

The data substantiates this bleak assessment – home prices have risen over 50% in 80% of U.S. housing markets over the past five years, while wages have only increased by around 15% on average.[2] This widening gap between skyrocketing housing costs and stagnant incomes has priced millions of would-be buyers out of the market.

The housing affordability crisis is now beginning to significantly impact the job market as well. Recruiters report that candidates are increasingly focused on securing the highest possible salaries, with little regard for benefits, work-life balance, or other traditional recruiting priorities. “All they care about is getting a number high enough to afford a home,” noted one frustrated HR manager. “It’s making it very difficult to fill open positions.”

The crisis is particularly acute for younger generations, who are saddled with student debt and struggling to save for a down payment as rents consume ever-larger portions of their paychecks. Many are resigning themselves to the likelihood that they may never own their own home.

Solving this affordability crisis will require a multi-pronged approach from policymakers, developers, and community stakeholders. Proposals include increasing the supply of affordable housing units, implementing stronger rent control measures, and bolstering government assistance programs. Efforts to raise minimum wages and invest in workforce development could also help narrow the income-price divide.

Without swift and decisive action, the American dream of homeownership may be lost for an entire generation – a sobering thought that demands urgent attention. The future of equitable and secure housing for all hangs in the balance.

[1] “Americans must make $120K a year to afford a home in 2024, realtor says,” New York Post, January 15, 2024, https://nypost.com/2024/01/15/real-estate/americans-must-make-120k-a-year-to-afford-a-home-in-2024-realtor-says/.[2] “The content of URL Map shows how much income you’ll need to buy the median-prices home in your state | CNN Business,” CNN, April 1, 2024, https://www.cnn.com/2024/04/01/success/home-prices-by-state-income-us-map-dg/index.html.