Housing Market Update: How to Find Out How Much House You Can Afford [Video]

Knowing how much house you can afford helps you avoid financial stress and set realistic expectations. This can ensure you can comfortably manage mortgage payments and plan for additional homeownership costs.

Why It Matters

Many Americans struggle to buy homes due to high prices and interest rates. In 2020, with rates below 3%, Americans earning $150,000 could afford a $600,000 home. Today, with rates around 7%, they’d only afford a $400,000 home.

What To Know

The median monthly housing payment hit a record of $2,920 in 2024, rising 4.3 percent from 2023 and 86 percent from 2019, according to data from Redfin.

Median-priced single-family homes and condos remain less affordable than historical averages in 98 percent of counties, according to ATTOM’s fourth-quarter 2024 U.S. Home Affordability Report.

A mortgage calculatorcan help you estimate your monthly payments and …