The typical household income needed to afford the median priced home in the US is now $114,627, which is a new record high. This is up 15% from a year ago and over 50% higher than at the start of the COVID pandemic. With mortgage rates close to 8%, households would need an annual income that is $40,000 more than the typical US median household income of around $75,000. Housing inventory remains near record lows as existing homeowners stay put in their homes with lower mortgage rates. Over 91% of mortgaged homeowners currently have a rate below 6%, making it unattractive for them to sell and buy again at higher rates. While average hourly wages have risen 5% in the last year, this has not kept up with the surge in income needed to purchase a typical home.