Home value increases surpassed median salaries in 25 metro areas last year, report says

In 25 of 38 metropolitan areas across the country, home value growth surpassed median salaries last year.

Home value appreciation outpaced median salaries in only five of the metropolitan areas.

San Jose, California, had the highest median income, but it also saw the most home value growth with $229k in 2021, according to the research. Home value appreciation in San Francisco outpaced salaries.

People who owned a home saw their household wealth increase. According to a press release, many renters witnessed that dream either soar out of reach or had to drastically adjust their plans.

Detroit and St. Louis had the lowest home value growth to income ratio.

Rents in the metro areas increased by 16% from the previous year. In Sun Belt cities like Miami and Phoenix, rents increased 25%.

Housing prices have continued to increase because of tight supply and rising mortgage rates. Down payments on traditional 30-year mortgages grew by more than $10,000 last year.