The "32% Threshold" -- Why it feels harder to buy a home - Angela Schimmels
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The "32% Threshold" -- Why it feels harder to buy a home

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  • A simple way to think about this: housing payments are taking a bigger bite of people's income than they used to.

  • For many years, the normal level was around 27% of income going to the mortgage payment (principal + interest).

  • It got extremely tough in 2023 at about 34% (one of the worst points in decades).

  • Even in 2025 where it was about 32%, which is still very high.

  • Compared to the past, today's cost to enter homeownership is much heavier:

    • Around 22% in 1972

    • Around 21% in 1998

  • What this means for regular people:

    • Fewer buyers qualify

    • Fewer buyers feel comfortable

    • Homes take longer to sell because the buyer pool is smaller

#HousingAffordability
#CostOfHomeownership
#RealEstateReality
#MortgageMath
#MarketReset

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