A study from real estate giant Redfin says it takes an annual salary of $115,000 to afford a house in the US.
The study proves what we already knew. Average salaries hover around $66,000 per year, and median household income is about $75,000 per year, meaning home ownership is out of reach for most Americans.
Housing Continues to Rise
The Redfin study showed that houses were about 15% more expensive in 2023 than in 2022. Although inflation on housing cooled in 2025, prices are still expected to rise about 3%.
The average mortgage payment is at an all-time high of $2807.
Salaries Not Keeping Up
Inflation on housing would be manageable if salaries kept up, but they’re not. According to the Social Security Administration, the average national salary in 2023 was $66,621, meaning a single person is unlikely to afford a home on their own.
It’s out of reach even for couples, with the median household income $40,000 less than needed to afford a home.
Internet Reacts
A user posted the study on the popular antiwork subreddit, a community where people discuss the merits of employment versus living a good life and ridicule America’s toxic work culture.
Users already feel inflation’s tightening grip on everything from food to housing, so they weren’t unaware of the outrageous cost of living, but the high annual salary needed to buy a home helped put the real cost into perspective.
Renting a Burden Too
Homeownership isn’t the only housing situation moving out of reach. Renting a decent apartment in any major city is nearly impossible for low-wage workers. The average monthly rent is approximately $1600, meaning a person who works a minimum wage job must work over 100 hours per week to afford their rent. That’s not feasible.
Some blamed landlords for higher costs, saying we need tighter regulations. The idea is that landlords only see dollar signs, so they raise their rents to keep up with “market values,” not caring that most people can’t afford the hefty monthly payment.
Some Landlords Don’t Have a Choice
The antiwork users often don’t consider the rising costs for landlords. When property values rise, taxes rise with them. So do the costs of maintenance and repairs.
Some landlords have to raise prices to break even.
Short Term Rentals
Others blamed the boom in short-term rentals like Airbnb. Thousands of investors swooped in to buy affordable housing, only to convert the units into short-term rentals. It had the bonus effect of limiting the affordable housing supply and increasing prices across the board.
Municipalities worldwide are attempting to limit out-of-city investors from buying up all their property to ensure access to housing for their citizens, but the investor class constantly pushes back on all these policies.
Can’t Fathom Making That Much
Users in traditionally lower-cost-of-living areas see the same wild increases in their housing costs, but don’t see wage increases to match.
One user said they make $40k per year, an above-average salary for their area, but still can’t fathom ever affording a home.
It’s Still Paycheck to Paycheck
Vitaliy Abbasov via Shutterstock.com.
Another user pointed out that someone making the low end ($115,000) would still live paycheck to paycheck if they bought a home.
“A house in my area is $3100 a month average WITH a 20% down payment,” they said. “That leaves $1,700 for bills, food, savings, car, life.”
$1700 a month after paying for housing is enough to survive, but not enough to thrive. After paying for food, utilities, insurance, and transportation, there will be little left for savings or any “luxury” spending, like a night out or a cup of coffee.
The Situation Must Change
The current financial climate is untenable. People can’t afford life, as a recent study proves. Nearly 60% of all Americans can’t afford a decent standard of living.
When more than half the population can’t afford to live, there’s a problem.
We need a massive paradigm shift to start valuing the things that truly matter: humanity, community, and actualization. The never-ending quest for ever-increasing profits must come to an end.