Families need a household income of more than $200,000 in order to buy a detached single-family home in the D.C. region, according to new data from listing service Bright MLS.
Lisa Sturtevant, the group’s chief economist, said the median price of a single-family home in the D.C. region is about $800,000. That means family income of about $230,000 is necessary to make that type of house affordable.
In parts of Northern Virginia, homes are even more expensive. Single-family houses in places such as Arlington, and parts of Alexandria and McLean, could cost over $1 million, which requires a family income of over $300,000.
The market, Sturtevant said, is becoming increasingly challenging for first-time buyers. This week, the National Association of Realtors said the median age of first-time homebuyers reached 40.
Buyers who made purchases during the pandemic capitalized on low mortgage rates and are benefiting from equity growing in their house, Sturtevant said.
But, for others, “inventory is increasing, but price points are still so high, and it’s really hard for many of those buyers to get in,” Sturtevant said. “So they’re waiting, they’re renting longer and they’re waiting longer, and that’s why we’re seeing the average age of a first-time homebuyer on the rise.”
The median price of homes sold in the D.C. region last month was $630,000, according to the Bright MLS report, up from $600,000 in October 2024. That figure includes condos, townhomes and single-family homes.
A household income of about $200,000 is required to afford a D.C.-area home that costs more than $600,000, Sturtevant said, considering factors such as a mortgage and home insurance.
Meanwhile, Sturtevant called the Northern Virginia housing market resilient, given the layoffs at federal agencies and the government shutdown.
In Fairfax County last month, the median sales price for all homes was $745,000. In Loudoun County, it was $741,000.
In Montgomery County, Maryland, it was $625,000, and in Prince George’s County, it was over $452,000. In D.C., it was $675,000.
In Northern Virginia, Sturtevant said the high-end housing market has been robust.
“Homes priced at $1.5 to $2.5 million and higher, we’re seeing a much stronger market in that segment than we are in the entry-level market and the more moderately-priced market,” Sturtevant said. “That says to me that folks at the higher income levels are actually just feeling a little bit more financially secure right now.”
If buyers have flexibility in the type of home they want to buy, Sturtevant said there are more condos on the market in Northern Virginia and D.C. than in 2019.
Sellers are also expecting a negotiation.
“If you’re seeing a home that’s outside your price range, there are more and more sellers dropping their asking prices and negotiating,” Sturtevant said.
There are weaker housing market conditions in Montgomery and Prince George’s County, Sturtevant said, and in D.C., there’s been “a real strong pullback in showing activity, in the number of people putting offers on homes.”
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