The typical person purchasing today’s median-priced home for about $420,000 has a record-high $2,864 monthly housing payment with a 7.1% mortgage rate, the current 30-year fixed-rate average

The typical person purchasing today’s median-priced home for about $420,000 has a record-high $2,864 monthly housing payment with a 7.1% mortgage rate, the current 30-year fixed-rate average.


Nearly two in every five (38%) homeowners believe they couldn't afford to purchase their own home if they were buying it today, according to a recent report from Redfin, the technology-powered real estate brokerage.

This finding is based on a Redfin-commissioned survey of approximately 3,000 U.S. residents conducted by Qualtrics in February 2024.

Of those homeowners who responded to this question, nearly three in five (59%) have lived in their home for at least 10 years, and another 21% have lived in their home for at least five years. This indicates that the majority of respondents have witnessed significant increases in housing prices in their area since they bought their home: The median U.S. home-sale price has doubled in the last 10 years and has risen nearly 50% in the last five years alone.

Several factors have contributed to the soaring home prices over the last decade. The already high home prices surged during the pandemic, fueled by remote work and historically low mortgage rates, which prompted many Americans to move and purchase homes. Even before the pandemic, home prices were on the rise due to a prolonged shortage of housing supply, coupled with a robust job market and a growing population that increased demand.

Rising mortgage rates are another factor making it challenging for many homeowners to afford their own home if they were buying today. For example, the typical person purchasing today's median-priced home at around $420,000 faces a record-high monthly housing payment of $2,864 with a 7.1% mortgage rate, the current 30-year fixed-rate average. In contrast, if they were to buy a home for the same price with a 4% mortgage rate, which was common in 2019, their monthly payment would be $2,210, approximately $650 less.

"Rising home prices have both positive and negative aspects. On one hand, homeowners benefit from the increased home values and can consider themselves fortunate to have entered the housing market when they could still afford it," explained Redfin Senior Economist Elijah de la Campa. "On the other hand, the prospect of buying a new home has become daunting or even impossible for many people who wish to move. Prices have risen so much that a similar home in the same location would now be much more expensive than a home someone already owns–even after adjusting for inflation. When you factor in elevated mortgage rates, moving up to a larger, nicer home becomes even more expensive and potentially unattainable."