U.S. home prices soared 19.6% on average last year
House price rises exceed median-income workers salaries
For the first time since 2000… Analysis of the Corona 19 Effect [Edaily Reporter Jang Young-eun] House made more money than work As real estate prices in the United States surged last year, it was found that house prices rose more than the salaries of middle-income workers.
According to the Zillow Group, the largest real estate information company in the United States, the average home price in the United States soared 19.6% in the past year to $321,634, the Wall Street Journal reported on the 17th.
Last year, house prices rose by $52,667 from the previous year, exceeding the $50,000 earned by median-income workers in the United States last year. This is the first time since Zillow began collecting related statistics in 2000 that the increase in the average home price in the United States has exceeded the median pre-tax earnings, which reflects inflation.
The background to the surge in house prices in the United States last year is the aftermath of the COVID-19 pandemic. It is analyzed that house prices have risen as demand for housing has increased due to the expansion of telecommuting due to the COVID-19 crisis, while distribution has become abundant in the market due to low mortgage interest rates and large-scale quantitative easing.
The region with the largest gap between the increase in house prices and the salaries of median-income workers was in California. The average home price in San Diego, California, one of the most expensive areas in the United States, rose by $160,000 last year, nearly three times the average workers annual income of $55,000 in the area.
In addition, in Atlanta, Dallas, Salt Lake City, and Boise, Idaho, house prices rose sharply and exceeded earned income, while in Chicago, Washington DC, Philadelphia and Detroit, house prices rose below earned income.
The surge in US home prices last year was a boon for homeowners, but it also acted as a high barrier to entry for first-time buyers, the WSJ noted.
This year, the housing market in the United States has continued to rise due to a lack of supply compared to demand. In this situation, attention is focused on whether the rise in house prices will be halted as the Federal Reserve, the US central bank, raises interest rates for the first time since the COVID-19 crisis. Freddie Mac, a state-owned mortgage company, said this week that the 30-year fixed-rate mortgage rate stood at 4.16%, surpassing 4% for the first time in three years since May 2019.