Buying a home in the Tampa, Florida, area remains out of reach for many households, even as incomes have risen, WFLA reported.
Redfin's numbers pegged the salary needed to purchase a median-price home in the region at just over $103,000 a year — a level that is well above the earnings of many local families, underscoring persistent affordability challenges in one of Florida's most closely watched housing markets.
What's happening?
According to a Redfin housing report, affording a typical home in the Tampa area calls for annual earnings of $103,549, up 0.2% from last year.
Local household pay is well below that benchmark, with the area's estimated median income $81,390.
Using Redfin's measure, that creates a $22,159 shortfall between what a typical household brings in and what it would need to comfortably buy a median-price home.
Nationally, the figures are slightly higher, but the problem is the same.
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A typical home purchase requires about $109,796 in annual income, while the median U.S. household income is estimated at $87,599, leaving a gap of $22,197.
For this analysis, Redfin counted a home as affordable when monthly housing costs took up no more than 30% of a mortgaged buyer's income.
The calculation used a 15% down payment and included standard home prices, mortgage rates, and property taxes.
Why does it matter?
When the income needed to buy a home tops what most households earn, buyers may delay purchasing, stay in rentals longer, or settle for homes that do not fit their size and location needs.
At the local median income, a Tampa household would devote roughly 38.2% of its pay to the monthly cost of a typical home, slashing a family's remaining budget for necessities such as groceries, transportation, child care, medical bills, and savings.
Affordable options are also limited. Just 30.6% of Tampa-area listings fit the budgets of households earning the local median income. Across the country, 34.2% of listings were affordable for median-income households, up from 30.5% last year.
Conditions have been stubborn more than dramatically different.
Redfin said affordability has changed little because both wages and housing expenses have risen, though national income growth has outpaced housing cost growth.
What can I do?
Getting preapproved, checking how a monthly payment fits into a household budget, and comparing loan offers can help buyers avoid becoming overleveraged.
Homebuyers may also benefit from broadening their search.
Looking at small homes, condos, or townhomes and neighborhoods away from the most competitive areas can open up more affordable options, especially when only about 3 in 10 listings are within reach for median-income households.
A large down payment can also make a difference by lowering monthly costs, though that is not realistic for everyone. Buyers who are not ready to buy may be better off building savings, improving credit, and reducing debts before making a purchase.
Affordability is about more than sticker price. Mortgage rates, taxes, and ongoing monthly costs all matter.
Tampa remains a tough market for typical earners, given that the area's median household income still falls more than $22,000 a year short of Redfin's affordability target for a home.
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