Nearly Half of Middle-Income Renters Make More Than Their Parents but Still Can’t Afford Homes

The dream of homeownership is fading for thousands of middle-income Americans, according to a new survey.Some 44% percent of middle-income renters say they earn more than their parents did at the same age, but that they still can’t afford a home, according to the survey from Neighbors Bank.The survey collected the thoughts of 1,011 renters with a household income of $40,000 to $125,000. Based on the results, these middle-income renters feel the possibility of homeownership is slipping away.Over the past few decades, home prices have risen far faster than incomes and overall inflation. From 1990 to 2024, the median sales price of existing homes increased more than 320%, according to data from the National Association of Realtors. Meanwhile, incomes rose about 180% over the same period, U.S. Census data shows.The trend has only accelerated over the past several years, as home prices soared during the COVID-19 pandemic buying frenzy. Existing-home sales prices rose about 50% from 2019 to 2024, while incomes rose about 22%.“That math may be inconsequential if we're talking about the price of lettuce, but when we're talking about something that costs hundreds of thousands of dollars, th...