Rochester home affordability requires 31% income boost compared to 2022

Kevin Oklobzija//October 17, 2023//

Houses continued to sell quickly and well above list price in October, according to data provided by the Greater Rochester Association of Realtors. (File photo by Kevin Oklobzija)

Kevin Oklobzija//October 17, 2023//

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A typical would-be homebuyer must earn nearly 31 percent more compared to just one year ago in order to afford a median priced house in the Rochester metro area.

Redfin, the tech-powered real estate company, found that the average buyer in Rochester needs an annual income of $66,000 to comfortably pay the $1,647 monthly mortgage payment on the median-priced home. That median sales price soared to $241,500 in August.

The 30.7 percent year-over-year rise in affordability in Greater Rochester was the fifth-largest spike in the nation, according to Redfin. Only Miami and Newark, N.J. (33.4 percent), Bridgeport, Conn. (32.1) and Hartford, Conn. (31.2) saw larger percentage increases among the 100 largest metro areas.

The continuing shortage of homes for sale, combined with interest rates on a 30-year mortgage averaging between 7.3 and 7.7 percent, means buyers are being pinched, since wage increases aren’t keeping pace.

“In a homebuyer’s ideal world, rising mortgage rates would push demand and home prices down enough to make up for high interest payments,” Chen Zhao, Redfin economics research lead, said in a news release. “But that’s not happening now. Although new listings are ticking up slightly, inventory is still near record lows as homeowners hang onto their low mortgage rates — and that’s propping up prices.”

Compared to much of the country, however, the Rochester market remains a homebuying bargain. In 17 of the 100 most populous cities, buyers must earn more than $150,000 to afford a median-priced house, and an income of more than $100,000 is required in another 33 cities.

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