The eye-watering price increase for an average home now compared to pre-pandemic
Home prices have skyrocketed since the pandemic, as experts reveal it is becoming increasingly difficult for average Americans to purchase properties.
From March 2019 to the same time this year, home values have jumped an alarming 39 percent, according to a new report from the National Association of Realtors (NAR) and Realtor.com.
While the middle and upper class are seeing a slow improvement in the housing market, the situation is only worsening for those earning less than $75,000 annually.
According to Pew research from last year, the middle class income range falls between $54,009 to $161,220.
The NAR study determined that 21.2 percent of the market is available to people earning between $75,000 and $100,000 each year.
This statistic rose from last year, when 20.8 percent of the housing market was affordable for this middle to upper-middle class group, CNBC reported.
However, in March 2019, these buyers had the funds for 48.8 percent of US active listings.
If the market was balanced - meaning the number of buyers matched the number of houses for sale - this group would be able to afford about 48 percent of homes, experts said.
Home prices have skyrocketed since the pandemic, as experts reveal it is becoming increasingly difficult for average Americans to purchase properties (pictured: an Oakwood, California neighborhood)
Chief Realtor.com economist Danielle Hale (pictured) said there are limited homes available for low income Americans
While the middle and upper class are seeing a slow improvement in the housing market, the situation is only worsening for those earning less than $75,000 annually (pictured: a sold home in Westhampton Beach, New York)
According to the US Census Bureau, there are roughly 1.3 million homes in the US market.
In order to balance it out, the NAR reported more than 416,000 listings priced at or below $255,000 would need to be added.
For those earning under $75,000, there are even less options than last year.
CNBC reported only 8.7 percent of houses on the market in March were in the price range of someone making $50,000 a year. Last March, 9.4 percent of listings were affordable for this group.
But during the same period in 2019, lower-income earners could still buy more than a quarter of homes - 27.8 percent.
Wealthier Americans have been relatively unscathed by COVID-19's strain on the housing market.
As of this March, people bringing in more than $250,000 could afford a staggering 80 percent of residences for sale.
'Shoppers see more homes for sale today than one year ago, and encouragingly, many of these homes have been added at moderate-income price points,' chief Realtor.com economist Danielle Hale summarized to CNBC.
According to the US Census Bureau, there are roughly 1.3 million homes in the US market (pictured: homes in Crockett, California)
Mortgage rates shot up after dropping to record-lows in 2021, deterring buyers from purchasing properties
'But as this report shows, we still don’t have an abundance of homes that are affordable to low and moderate-income households.'
The pandemic 'unleashed a homebuying frenzy' due to the combination of low loan rates and people spending more time indoors, Axios experts explained.
In January, the median US home price was $418,000 - 45 percent higher than five years before, when the median was $289,000.
Mortgage rates shot up after dropping to record-lows in 2021, deterring buyers from purchasing properties.
And those who quickly snagged a house while mortgage rates were low are not inclined to sell those properties, 'locking up supply,' according to Axios.
The severity of the situation varies based on location, with Midwestern markets being considered relatively balanced.
Cities including Akron, Ohio; St. Louis and Pittsburgh reportedly have enough homes for sale for all the people looking to buy them.
Places such as Raleigh, North Carolina and Grand Rapids, Michigan have seen improvement in their markets, although they are not quite balanced.
In January, the median US home price was $418,000 - 45 percent higher than five years before, when the median was $289,000 (pictured: homes in Amagansett, New York)
There are no signs of housing relief for major regions including Los Angeles, San Diego and New York City, the NAR report asserted (pictured: a San Diego neighborhood)
But 40 percent of Metropolitan markets are in bad shape.
For example, in Seattle and Washington DC, citizens need to earn more than $150,000 each year to afford just half of homes for sale.
'It's very sad to be priced out of our communities,' Kylie Carpenter, a teacher in Seattle, told Axios.
There are no signs of housing relief for major regions including Los Angeles, San Diego and New York City, the NAR report asserted.
Decades of overbuilding, expensive material costs and zoning laws contribute to the mess, according to CNBC.
