The news has not been great for first-time homebuyers lately. True, just about every type of buyer has woeful stories to tell about today’s stressed housing market, but first-timers? They have found themselves in an unfortunate league of their own.

The reason: Affordable starter homes, those essential first purchases in a typically lifelong journey of homeownership and building security and wealth, are vanishing across the U.S. like summertime cicadas. And these entry-level homes that do hit the market are now often priced out of the reach of the people who need them the most.

It’s a problem that has been gathering steam for some time. Classic starter homes began going up in earnest across the country after World War II, giving young Americans without much equity the ability to own property. Builders made these abodes smaller without as many high-end amenities to keep them more affordable for first-time buyers. But in recent years, they’ve shifted to erecting larger, more profitable homes as land, materials, and governmental costs have driven up prices. Many starters have been torn down so larger homes can go up in their stead. And investors have bid up the prices on those that remain.

Now, a poisonous combination of ballooning prices and surging mortgage interest rates have made buying a starter home nearly twice as expensive as it was before the COVID-19 pandemic, putting the cost out of reach for millions of Americans.

So, how much do most people really need to earn each year in order to secure their own piece of the American dream in today’s market? Realtor.com® looked at the household incomes that buyers would need to have in the 100 largest metropolitan areas to afford a two-bedroom starter home.

In 2019, the median listing price for such a home, typically in the bottom third of a metro’s price range, was just below $220,000—which would have required roughly a $49,000 household income. Today, the same home is listed for $325,000, a 48% increase in price. However, with mortgage rates around twice what they were three years ago, hitting 6.29% for 30-year loans last week, buyers would need to earn nearly $91,000 to afford the same house.

The situation isn’t likely to improve anytime soon.

“It’s a tough market, especially for first-time buyers,” says Realtor.com Chief Economist Danielle Hale. “Unfortunately, the outlook is not great.”

The long-term shortage of homes for sale—along with red-hot demand when mortgage rates were at record lows and buyers looking for more space during the pandemic—allowed home prices to surge to new heights over the past few years.

“There’s not a lot out there,” says Len Kiefer, a deputy chief economist for Fannie Mae. “This has been going on for 40 years.”

And some big changes in the market would be needed for first-time buyers to have a better chance at being able to afford starter homes.

In the short term—the next several months at the very least—it doesn’t look like mortgage rates will fall or incomes will shoot up. But there are signs that the beginning of a housing correction could put starter-home shoppers back into a better position. More homes are for sale and there are fewer buyers who can afford to compete for them.

“We have seen buyer demand pull back in a big way, because affordability has come down so much,” Hale says. “And hiked interest rates seem to be having an impact, with listing inventory climbing in the past few months.”

To find out how much a starter home costs across the nation, Realtor.com looked at the median list prices for two-bedroom homes in the 100 largest metropolitan areas for September, using a 6.25% mortgage rate. Then we calculated the median monthly mortgage payment, including estimated taxes and insurance costs, to come up with the median annual household income buyers would need to afford a starter home. This assumes buyers don’t spend more than 30% of their take-home pay on housing.

(Metros include the main city and surrounding suburbs, towns, and smaller urban areas.)

If you’re curious to find out how much a starter home costs in the 100 largest metros, you can search the interactive table below to learn the estimated monthly payments and annual income required to purchase a two-bedroom home in these areas.

It costs how much to buy a starter home?
With home prices having skyrocketed in the past three years, the average starter home now costs around 48% more. But with higher mortgage rates recently, the income it takes to purchase a “starter” home has risen by 86%. Find metro areas using the search box, or sort the table by clicking the column headings.Table showing the median two-bedroom home price for each of the largest 100 metropolitan areas in the U.S., along with the estimated monthly payment and estimated required income to afford it. Page 1 of 5 Estimated Required Income$24,000 $245,000

White bathrooms have been a major trend in recent years. However, both consumers and designers are becoming extremely tired of this style. “One trend that has been on its way out for a little while now is the all-white bathroom. Although many acolytes of the all-white bathroom see it as a very clean look, its moment seems to be in the rearview mirror as many feel it is passé,” says agent Steve Gottlieb of Coldwell Banker Warburg. “Those embarking on bathroom remodels now favor veinier stones with a more natural look instead of all-white materials like Corian. Although many people still gravitate towards light tones, they favor light colors mixed with warm colors for balance instead of the stark all-white that was so popular in a previous design era.”

Paige Wassel, design expert and YouTube creator tells me that the reason why white bathrooms have been so popular is that many people are under the impression that white makes a bathroom look larger. “When you have a small bathroom, you immediately think you need to keep the space white to make it feel bigger, when actually the opposite can work, adding rich dimension that gives the illusion of infinite corners and curves.”

She prefers darker tones and warm lighting, especially if a bathroom lacks a source of natural light. “A small bathroom doesn’t always have to be a beacon of blue skies and bright sunshine to feel substantial. That’s not to say it always needs to be dark, I’m just suggesting that white and bright not always be the default. Fight the fallacy.”

Minimalism

Minimalism has permeated nearly every room in the home in recent years because most people believe it’s an easy aesthetic to achieve. However, when done right, it’s more work than most anticipate and when done improperly, looks uninteresting. “For bathrooms, we feel neutrals and minimalism are done for 2023. We find our clients are after luxe moments that often include dramatic, patterns, colors, and layering of textures and materials,” says interior designer Philip Thomas Vanderford of Studio Thomas James. “We say go for the patterned wallpaper versus neutral paint, use the black marble versus white. There is no reason a bathroom needs to be all white.”

Faux Wood Tiles

There are very few trends that are almost always executed as poorly as faux wood or wood effect tiles. More often than not, they look cheap. Add massive grout lines and this aesthetic fools no one. “This is an all-around no for me. Anything that is trying to be something it is not is a no,” says Wassel.

While many people opt for faux wood because it’s inexpensive, there are superior choices at the same cost or less. “Home Depot has plenty of amazingly simple, natural, and affordable tile options. Anything is better than faux wood,” explains the creator.

Limewash

Sometimes old becomes new again and then it becomes old again. Limewash is a great example of this because authenticity has become more of a priority in design. “I could never get on board with the limewash trend,” says Wassel. “Anything that is mimicking something real is a no for me. It’s trying to replicate stone but it really just feels like sponge painting from the 80s. Don’t get me wrong, sometimes it does look good, but, I give you two years and you will be painting over it.”

There are so many other ways to make walls look interesting such as uniquely hued paint or wallpaper. Even just adding art to bathroom walls is a great way to instantly elevate a space.

Chevron Tiles

Chevron tile, much like farmhouse doors is one of those design elements that’s either loved or hated. In 2022, it seems experts are airing on the side of hate. “Unless this tile or wood flooring is located in the original Parisian space, I hate the farmhouse’s modern twist to it. Unless it’s original, avoid it. I mean, unless you love the trend of course. You do you,” explains Wassel.

Large Format Tiles

“The last few years we saw a huge trend in the use of larger format tiles aimed to avoid as many grout lines as possible. This created a more transitional and contemporary bathroom look,” says interior designer Ryan Saghian.

He sees things going the opposite way with smaller-scale, more artisanal-looking tiles being popular in 2023. “This leans towards a more traditional look and feel which is the direction the design world is heading in.”

Glitzy Mosaics and Busy Patterns

Say bye to over-the-top glamorous bathrooms in 2023. “We are seeing less of the shimmer and glam in bathrooms and more of a spa-like serenity feel. There is a strong trend using color-blocking with tiles that have textures, like handmade zellige by Clé Tile,” says interior designer Holly Freres of JHL Design. “We’re using these quieter patterns with bold colors still to evoke a feeling of playfulness within the space. This gives a calming feeling for the eye but not too serious if you will.”

Source: https://www.forbes.com/sites/amandalauren/2022/12/09/7-bathroom-trends-going-away-in-2023/?sh=5b2e022f4909