Homeowners Who Bought Pre-2022 Are Saving Over $8,000 A Year

The median monthly mortgage payment saw a dramatic increase of 50% for homeowners who purchased after 2021, compared to those who bought before, according to the latest Federal Reserve Economic Well-Being of U.S. Households report. The median payment reached $1,500 in 2023, with stark contrasts based on the purchase date.

By the numbers:

• Homeowners who bought before 2022: $1,400 median monthly payment
• Homeowners who bought after 2022: $2,100 median monthly payment

Regional disparities: Mortgage payments varied significantly across census regions, reflecting differing home prices:

• Northeast: $1,500
• West: $1,745
• Midwest: $1,200
• South: $1,422

The lowest payments were seen in the Midwest for pre-2022 buyers ($1,200), while the highest were in the West for post-2022 buyers ($2,800).

Homeownership trends:

• 64% of adults owned their homes in 2023.
• Homeownership varied widely by income:
  • 36% of adults with incomes less than $50,000 owned their homes.
  • 87% of adults with incomes of $100,000 or more owned their homes.
• About two-thirds of homeowners had a mortgage in 2023.

Renting landscape:

• 27% of adults rented their homes in 2023.
• Median rent rose by 10%, reaching $1,100.
• The primary reason for renting: inability to afford a down payment (nearly two-thirds of renters).
• 36% of renters preferred renting over owning.

Overall: Despite the challenges in housing affordability, 72% of adults felt financially okay in 2023, nearly matching the 73% in 2022 but still below the 78% high in 2021. Inflation remained the top financial concern, even with a decrease in the inflation rate over the past year.