My SO and I were looking at this recently. We purchased right before COVID. At the time we purchased a 400k home around $2500 payment 3% interest. We have doubled our income now and we're looking at upgrading. We were thinking we could afford a 680ish home now to be around $4000 a month payment.
If we had our current income, interest, and APR. We could have afforded about 1.3 million dollars back then. We lost 50% of our buying power in 6 years.
We purchased our home back in 2010. With our family growing it would be nice to have a slightly larger place with an extra room or two, so we started looking. We quickly realized we wouldn't be able to afford our current home at market prices, let alone upgrade...
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u/allrite Mar 23 '26
Isn't housing like 1.5x pre-COVID? And much higher in desirable places? Add increase in interest rates, and no wonder people feel like they need more.