- Home prices have reached an all-time high.
- Point2 says a median priced home in 100 of America’s largest counties is unaffordable for most Americans.
- All generations are struggling to afford a home right now, but Gen X stands the best chance.
Home prices have reached an all-time high and it’s making homeownership unaffordable for almost everyone, according to a new study.
Point2, a real estate database, calculated how much Americans could afford to set aside for a down payment on a home in 100 of the country’s largest counties. Assuming each buyer wished to spend no more than 30% of their income on housing costs, the data shows that in a majority of these counties, the median priced home is unaffordable for most boomers, millennials and Gen Zers.
“Given the discrepancy between home price growth and income growth, it’s no wonder the dream of owning a home seems just that for many generations – a dream,” Andra Hopulele, Point2 senior writer, told Insider.
Housing affordability has plummeted as a lack of housing supply has increased buyer competition and driven prices to new highs. As the market tightens, buyers are having a difficult time finding affordable options. While boomers still own the majority of homes in America, the market’s current dynamics are taking a toll on everyone — regardless of age. However, in this game of supply and demand, Gen X homebuyers are starting to come out on top.
Of all generations, Gen X, or people born between 1965 and 1980, stands the best chance at affording homeownership, according to Point2. The group is the only generation that can afford homes above the median price in 70 of the most populous US counties. Researchers say the range of affordable property prices for the demographic ranges from $225,201 in Hidalgo County, Texas, to almost six times that amount in San Mateo County, California: nearly $1.3 million
“This generation can afford the highest-value homes in most counties,”…