Louisville Home Prices Rising Faster Than Pay
January 16th, 2007 by Tre Pryor, Editor-in-ChiefThe Courier is reporting that home prices in the Greater Louisville area are growing faster than a typical worker’s salary:
To afford a median-priced house in the Louisville area in 2003, a buyer needed to make at least $41,141, according to the housing policy center. That amount had increased by 6 percent to $43,764 in 2005 and by 19 percent to $48,816 last year.
The median salary for a worker in the metro area was $27,269 in 2003, according to the Bureau of Labor Statistics. It rose by 3.5 percent to $28,226 by 2005, the most recent year for which data are available.
Builders should be aware of this trend and would be wise to focus on the Starter Home niche.