CHARLOTTE, N.C. — A new report from Zillow shows how out of reach an affordable monthly mortgage is for a median-income household.

What You Need To Know

  • Housing is considered affordable if payments cost no more than 30% of the household's monthly income 
  • A report from Zillow shows affordable monthly mortgage payments are out of reach for median-income households unless they put down more than 30% on the house up front
  • North Carolina Housing Finance Agency has increased down payment assistance amount to help make home loans more affordable 

Housing is considered affordable when payments are no more than 30% of that household or family's monthly income. According to Zillow, a median-income family would need to put down about 35.4% of the total cost of the house up front to make the monthly mortgage payment affordable.

The tech real-estate marketplace company says the typical home value in Charlotte is $386,371. A median-income family would need to put down about $149,041, or 38.6%, to make the monthly mortgage payment considered affordable.

In Raleigh, a typical home valued at $449,514 means the family would need to put $152,410 down or 33.9%. 

The U.S. 2022 Census says $74,580 is the median household income, and Charlotte realtor Jeff Clay says those down payments are unrealistic.

"The reality of this market is buyers, especially first-time homebuyers, aren't going to have that type of a down payment," Clay said. "We are seeing more of that from move-up buyers — people who are selling a house. They're taking the equity of their first home, and then being able to apply it to their next property."

Zillow said five years ago, a typical home would have been affordable to a median-income household with no money down. 

With more than a decade of experience in the business, Clay said the market is much different from when he first started.

"There were literally townhomes between $30,000 and $100,000 that I was selling, so certainly this market is a lot more different. We have seen crazy price appreciation over the last decade," Clay said. "I think it comes down to getting the information to the buyers and the sellers, exactly what they need about what makes the most sense and what's realistic."

Clay said buyers will still be able to find what they need with managed expectations. He said your first home does not have to be your forever home, and buyers may need to compromise on location and size.

The North Carolina Housing Finance Agency has three down payment assistance programs, helping families across the state make home buying more affordable. Within the last year the agency said it has increased the amount of money awarded in some of its programs because of the need.