US home prices rise faster than pay of young workers

Washington

MANY young workers in the US are finding that home prices are rising faster than their pay, making it harder for them to set aside the cash that they need for the purchase, studies show.

The typical first-time buyer purchases a house that costs 2.6 times his or her annual income, according to a report released by Zillow this week. In the 1970s, buyers found homes that cost about 1.7 times their annual pay, the study found.

The shift means that people need bigger down payments to make the transition to home ownership. At the same time, they face obstacles such as student loan bills and hi…