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This surge has led to a pivotal shift: it is now more cost-effective to rent than to buy. The average monthly rent has hit about $2,184, whereas the average monthly mortgage payment has soared to roughly $3,322. Notably, the gap between renting and owning has widened significantly, making homeownership less attainable for many.
The Erosion of Housing Affordability
The stark reality is that housing affordability in the U.S. has hit historic lows. For context, the median American household income in 2023 reached $59,425, which means that on average, Americans are now dedicating nearly 50% of their income—specifically 49.5%—to housing costs. Such a high percentage underscores the difficulty many face in covering basic housing expenses without undue financial strain.