Good news! Impressive! However, how much is due to price inflation?
"Nearly 7 million U.S. homes are now worth at least $1 million, up from about 1.5 million in 2005, according to the National Association of Realtors. Those properties make up 8% of the market, and in Hawaii, roughly 40% of homes have crossed that threshold.
Meanwhile, Americans need to earn about $110,000 a year to afford even a typical home, a Redfin report found. The median household income sits at roughly $88,000, leaving a gap of more than $22,000 between what families earn and what it takes to buy.
The affordability squeeze has eased slightly, with the gap shrinking from $26,000 a year ago and $29,000 two years ago as incomes rise faster than housing costs. Redfin defines “affordable” as a buyer’s mortgage not consuming more than 30% of their income."
Something seems to be odd with this chart by Redfin! Why that steep increase after 2021? Why not more historical data since it appears the curve was fairly flat before 2021?
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