Number of the Day Shows Housing Costs Outpacing Income

Our take on the most relevant or interesting figure in personal finance today

Number of the Day

That’s how much a typical household needs for a down payment on a house today -- thanks to rising home prices -- 44% more than in 2014.

In that year, median-income homeowners would have needed $36,000 to put 20% down for a home purchase, according to an analysis from Zillow released today.

Home values have risen more than twice as fast as homeowner income over the last six years. Since September 2014, home values have increased by 38.3%, while homeowner income has only increased by 18.8% in the same period ending in September of this year. 

The housing market is currently experiencing record-low mortgage rates, but the Zillow report's author, Chris Glynn, said these rates mask this “alarming” disparity between income and housing costs.

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  1. Zillow Economic Research. "Record Low Mortgage Rates Boost Affordability, But Mask Down Payment Difficulties."

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