June 30, 2025 #1 Local News, Information and Event Source for the Century City/Westwood areas.

Rents Stabilize, But Buying a Home Still Requires Six-Figure Salary

Homeownership Slips Further Out of Reach for U.S. Renters

Americans now need to earn over $116,000 per year to afford the median-priced home in the U.S.—nearly 82% more than required to rent the typical apartment, according to a new report from Redfin.

That figure reflects a sharp increase from prior years and marks the widest income gap between homebuyers and renters on record. In contrast, someone only needed to earn $64,160 annually to afford the typical apartment, based on the latest February data.

Redfin defines affordability as spending no more than 30% of income on monthly housing costs. According to its analysis, the cost of buying a home has been rising much faster than the cost of renting, driven by persistent home price growth, high mortgage rates, and limited housing supply.

In February, the median home sale price in the U.S. rose to $423,892, up 4.5% year-over-year, while average 30-year mortgage rates remained above 6.5%, more than double the lows seen during the pandemic. Meanwhile, rents rose just 0.2% to a median asking price of $1,604, as the market benefited from a wave of new apartment construction that increased supply and kept rent growth in check.

The typical U.S. household earns about $86,382 annually—roughly $30,000 less than what’s now needed to afford a median-priced home.

“It has become increasingly challenging for American renters to make the shift to homeownership thanks to the triple whammy of rising home prices, high mortgage rates, and a shortage of houses for sale,” said Elijah de la Campa, Redfin senior economist. “The gap between what someone must earn to buy versus rent may shrink in the coming months, but only because rents are expected to rise as the number of new apartments hitting the market tapers off due to a construction slowdown.”

In Salt Lake City, homebuyers need to earn $140,412 annually—134% more than what’s required to rent in the area, the steepest jump among the 42 major metro areas analyzed by Redfin. That’s a 28 percentage-point increase from last year.

Other cities showing large spikes in the income gap include:

  • Austin, TX: +24.6 points (143% more to buy than rent)
  • San Diego, CA: +21.7 points (127%)
  • New York, NY: +20.7 points (76%)
  • Los Angeles, CA: +20.7 points (141%)

In most of these cities, rents are falling while home prices continue to rise. In Salt Lake City, for example, asking rents fell 7.8% year-over-year while home prices increased by 4.3%.

In San Jose, CA, the disparity is most extreme. Buyers need to earn $408,557 annually to afford a home—218% more than the $128,580 needed to rent. That’s the highest homeownership premium in the country.

Other West Coast cities leading the list include:

  • San Francisco, CA: 176% more to buy than rent
  • Seattle, WA: 145%
  • Austin, TX: 143%
  • Los Angeles, CA: 141%

These cities, often tech-driven economies, have long been among the most expensive in the country. Despite New York City’s reputation for high costs, it ranked sixth in home buying expenses, with a smaller gap between renting and buying due to its already high rent levels. In New York, buyers must earn $199,708 annually—76% more than the $113,440 required to rent.

You can read the full report here.

Related Posts

Historic Sawtelle Nursery Site Could Become 40-Unit Townhome Complex

June 30, 2025

June 30, 2025

Sawtelle Continues to Change as Nursery Site Faces Redevelopment Plans have been submitted to redevelop a nursery site, F.K. Nursery,...

California Judge Rules FAIR Plan’s Smoke Damage Policy Unlawful

June 29, 2025

June 29, 2025

Court Says Wildfire Insurance Program Illegally Denied Claims Legal protections for California homeowners took a step forward this week after...

(Video) Culver City Residents and City and County Leaders Rally for Disappeared Ice Cream Man Ambrocio “Enrique” Lozano

June 29, 2025

June 29, 2025

US Representative for California’s 37th Congressional District, Sydney Kamlager-Dove Speaks About What is happening to the disappeared.

Drake Slashes Price on Beverly Hills Estate to $79 Million Amid Market Slowdown

June 29, 2025

June 29, 2025

Price Cut Adds to a Broader Retreat From His Los Angeles Real Estate Holdings. Musician Drake has reduced the price...

Iranian Pastor in West L.A. Speaks as Church Rocked by Immigration Raids 

June 28, 2025

June 28, 2025

Five Detained as Fear Spreads Through Persian Christian Faith Community  Fear has spread through a West Los Angeles congregation after...

Overdose Deaths Drop 22% in Los Angeles County, Marking Largest Decline on Record

June 28, 2025

June 28, 2025

Fentanyl Fatalities Fell 37% as County Ramps up Funding for Prevention, Treatment Drug overdose deaths in Los Angeles County declined...

Cinespia Brings Fireworks and Fan Favorites to Hollywood Forever This July

June 27, 2025

June 27, 2025

Watch Top Gun, La La Land, and More Under the Stars at Hollywood Forever Cinespia, Los Angeles’ iconic outdoor movie...

California Doubles Down on Hollywood: $750M in Tax Credits Approved for Film and TV Industry

June 27, 2025

June 27, 2025

State Lawmakers Back Major Expansion of Production Incentives, Raising Job Projections Los Angeles’ film and television industry is poised to...

Robbery Suspects Captured in Beverly Hills After License Plate Alert Triggers Pursuit

June 27, 2025

June 27, 2025

Foot Chase Ends in Arrests After ALPR Flags Robbery Vehicle in Beverly Hills An alert from the Beverly Hills Police...

EEEEEATSCON Los Angeles Returns with Star Chefs, Firefighter Tribute, and Wildfire Relief Efforts

June 27, 2025

June 27, 2025

Culinary Festival Features Exclusive Restaurant Collabs, Support for Small Businesses  EEEEEATSCON Los Angeles, the celebrated food festival curated by The...

Supporters to Gather This Weekend for Longtime Culver City Paleta Seller Held in Detention

June 27, 2025

June 27, 2025

Family and Neighbors Will Gather Sunday to Sell Paletas and Raise Funds Supporters will gather this Sunday at Veterans Park...

Suspect Charged by Los Angeles DA with Shooting of Santa Monica Cop and Teens

June 27, 2025

June 27, 2025

Faces Attempted Murder Charges and Over 100 Years to Life in Prison if Convicted. Criminal charges have been filed against...

Café UCLA Pops Up in Westwood to Honor Arthur Ashe’s Historic Wimbledon Win

June 27, 2025

June 27, 2025

Three-Day Celebration Includes Giveaways in Tribute to the Iconic Athlete and Activist UCLA will commemorate the 50th anniversary of Arthur...

Captain America Hits the Skirball Big Screen for Heroic Outdoor Movie Night

June 27, 2025

June 27, 2025

Museum-Goers Can Also Catch a Superhero-Themed Drawing Session The Skirball Cultural Center will host an outdoor screening of Captain America:...

Demolition Underway at Beverly Grove Squatter Site After Mystery Fire Renews Safety Fears

June 27, 2025

June 27, 2025

Crews Begin Tearing Down Long-Vacant Apartments on First and Flores  Demolition has begun at a group of long-abandoned apartment buildings...