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This is how much money you need to make to buy a home in Atlanta

By FOX 5 Atlanta Digital Team
Published  November 23, 2022 10:28am EST
Real Estate
FOX 5 Atlanta

Housing market may be heading for tough 2023

Home prices have boomed in metro Atlanta and across the country the past two years, but things are likely to change as we get ready for the new year.

ATLANTA - Metro-Atlanta residents need more than 50% more annual income than they did this time last year to afford a home, according to a new analysis by real estate company Redfin. 

The study says the annual income required to afford a median-price home in October 2022 in metro Atlanta was $99,427, about 50.4% more than the income needed in October 2021, $66,116. 

Redfin shows the median sale price for a home in metro Atlanta is $369,500 in 2022, up from $340,000 in 2021.

HOW WILL RISING INTEREST RATES IMPACT THE HOUSING MARKET IN 2023?

The monthly mortgage payment went up to $2,486 this year from $1,653 one year ago. 

On average, homebuyers in the United States need about $107,000 of annual income to afford a typical home, up 46% from last year. That figure is calculated based on spending no more than 30% of income on monthly mortgage payments for a median-priced home.

Communities in Florida, in particular, have seen some of the biggest increases. Buyers in North Port need to earn an estimated $131,535 annually to afford a typical monthly mortgage payment of $3,288, up 73.9% from $75,659 last year. That's the biggest percentage increase of any major U.S. metro. 

Mortgage rates are more than double what they were a year ago. 

The Federal Reserve kept interest rates low during the pandemic, but experts say the housing market looks completely different now compared to the last two years. House hunters are dealing with suddenly high rates, rising home prices and a short supply of properties.