Rising Home Values Outpace Income Bumps for Many Workers

TWL_2015_may_blog2Low-income workers looking to make the shift from renting to home-ownership may have a serious challenge on their hands, according to a new report released by Zillow Research. That report reveals that since 2000, wages for the lowest third of American workers have only grown 15 percent while home values have increased 41 percent. This significant divide means even the cheapest homes may be out of reach for low-income workers. Zillow says to afford even the lowest-priced homes in 77 housing markets, low-wage earners would need to spend 30 percent of their salary just to cover the mortgage. That exceeds the housing expense ratio needed to qualify for most mortgages.

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Image Source: Katie Brady