Many families find the American dream out of reach as home prices high

abcnews.go.com:

With home prices high, American families are grappling with the prospect that homeownership might remain out of reach for them for a long time

The Petersen family’s two-bedroom apartment in northern California is starting to feel small.

Four-year-old Jerrik's toy monster trucks are everywhere in the 1,100-square-foot unit in Campbell, just outside of San Jose. And it's only a matter of time before 9-month-old Carolynn starts amassing more toys, adding to the disarray, says her mother, Jenn Petersen.

The 42-year-old chiropractor had hoped she and her husband, Steve, a 39-year-old dental hygienist, would have bought a house by now. But when they can afford a bigger place, it will have to be another rental. Petersen has done the math: With mortgage rates and home prices stubbornly high, there's no way the couple, who make about $270,000 a year and pay about $2,500 in monthly rent, can afford a home anywhere in their area.

According to October data from the Federal Reserve Bank of Atlanta, a San Jose family with a median income of $156,700 would need to spend 80% of their income on housing — including an $8,600 monthly mortgage payment — to own a median-priced $1.54 million home. That's far higher than the general rule of thumb that people should pay no more than 30% of their income on a mortgage or rent.

Moving out of state is out of the question for the Petersens — they have strong family ties to the area and their income would plummet if they move to a lower cost-of-living area. “I’m not willing to give up my job and close connections with my family for a house,” Petersen said.

The issue is widespread and near historic highs nationally: As of last fall, the median homeowner in the U.S. was paying 42% of their income