Historic home prices

The median sales price of homes in the U.S. is rising drastically. Here’s why …

Transcript

00:00Recent data indicates that the median sales price for a home in the U.S. is nearly $400,000.

00:06So why are homes expensive all of a sudden?

00:08Britt can explain in less than 60 seconds.

00:10According to Forbes, a person should have a net take-home pay between $10,500 to $11,000 per month

00:18in order to afford a median-priced home in the current economy.

00:22That comes out to an annual salary of between $165,000 to $195,000.

00:28According to 2020 data from the U.S. Census Bureau, however,

00:32the median annual household income in the country was just above $67,500.

00:38For comparison, the median sales price of homes in the U.S. in 2020 was just over $290,000.

00:45The reason for the drastically rising home prices can be blamed on the pandemic,

00:49which forced people to shelter in place and turn people's homes into offices and schools,

00:54as well as housing inventory shortages and record low interest rates, which made competition fierce.