Homeownership is becoming a more exclusive club in the U.S. New research shows that a new income gap is emerging in real estate between buyers, owners, and renters.
The gap in median household income between homebuyers and owners is at least $5,000 annually, and in some markets, it's double that. The typical homebuyer in 2017 earned 6.5 percent more in household income than the typical homeowner, and twice what typical renters earned in that time. The median income for the typical homebuying household almost doubled its growth rate compared to existing homeowner households between 2012 and 2017, according to Zillow's research.
In Dallas, for instance, the typical buyer household earned almost $12,000 more than the typical homeowner. Only five years earlier, the difference in incomes was $1,000, with homeowners earning more than buyers.
Still, in some markets, there is little if any income gap. And in others, such as Indianapolis, the typical buyer household actually earned slightly less than homeowners in 2017.
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