Omaha Real Estate: Wage Increases Make Home Buying More Affordable

Wage Increases Make Home Buying More Affordable

Wage Increases Make Home Buying More Affordable | MyKCM

Everyone knows that housing affordability has been negatively impacted by rising prices and increasing mortgage rates, but there is another piece to the affordability equation – wages.

How much a family earns obviously impacts how easy or difficult it is for them to afford to own a home. Because of an improving economy, wages are finally beginning to increase – and that dramatically affects home affordability.

According to the National Association of Realtors’ (NAR) September 2018 Housing Affordability Index, wages have increased in every region of the country:

Wage Increases Make Home Buying More Affordable | MyKCM

After applying current salaries, home prices, and mortgage rates to their Home Affordability Index equation, the index, though still lower than this time last year (160.1 to 146.7), increased over the last month (141.2 to 146.7). For the complete methodology used by NAR, click here.

The percentage of income needed to own a home has also decreased each of the last three months. It currently sits at 17% which is substantially lower than historic numbers.

Wage Increases Make Home Buying More Affordable | MyKCM

Bottom Line

If you are a first-time buyer or a move-up buyer who believes that purchasing an Omaha home is not within your budget, let’s get together to determine if that is still true.

 

Comments

Dear Troy,

About time for better affordability. Glad to hear that things are improving for everyone.

Posted by Dörte Engel, ABC - Annapolis, Bowie, Crofton & rest of Maryland (RE/MAX Leading Edge) 29 days ago

That's good news. Nice report

Posted by Mike Baltierra, Full Service at Your Service Realtor-Corona CA (Rise Realty ) 29 days ago

Participate