For many members of Generation Z and Millennials, the path to homeownership has not been easy, and some don’t believe they earn enough to secure a mortgage in the first place. According to GOBankingRates, nearly 19% of young adults ages 18 to 24 say they believe you need a salary of at least $200,000 or more to purchase a home—the largest percentage of respondents who feel this way.
This is not too far off as approximately $80,000 is needed to purchase a $300,000 home, GOBankingRates reports, citing data from the Mortgage Research Center. However, because the median home sales price was $427,496 as of September 2024, the average person would need a much higher salary to comfortably afford a home.
The Mortgage Research Center’s study revealed that the required income to buy a $400,000 house is $108,000. If you can find one, you may be able to afford a $200,000 home on less than $54,000 per year annual salary. Read more
