Former White House communications director Anthony Scaramucci warned that inflation and rising housing costs are leaving millions of Americans financially strained, arguing that many households can no longer realistically afford the median-priced U.S. home.
Posting on X on Sunday, Scaramucci argued that rising housing costs and persistent inflation are leaving many Americans unable to afford the median-priced U.S. home.
Scaramucci said the median home price in the U.S. currently stands at roughly $432,000 and estimated that households would need about $160,000 in annual income to comfortably afford the mortgage while still maintaining financial flexibility.
"The median income is $84,000," Scaramucci wrote. "That means half the country can’t afford the median house."
He said the affordability gap is increasingly forcing Americans to cut back on essential spending, including healthcare and routine expenses.
"These are people skipping medical appointments, skipping the dentist, missing a prescription," he wrote. "This isn’t abstract monetary policy. This is how people are actually living."
Housing Affordability Pressures Persist
Scaramucci's comments come as affordability concerns continue weighing on the U.S. housing market despite modest improvements in inventory levels.
According to recent National Association of Realtors data, the median existing-home sales price rose to $417,700 in April, marking the 34th consecutive month of annual price increases. Existing-home sales rose slightly during the month, though affordability pressures continued limiting broader market activity.
Zillow Group Inc. (NASDAQ:Z) CEO Jeremy Wacksman recently said affordability remains the central challenge across the housing market, adding that macroeconomic uncertainty continues keeping many buyers on the sidelines.
"We’re seeing very modest gains in transaction volumes this year," Wacksman said during a CNBC interview earlier this month. "The challenge continues to be one of affordability."
Inflation Pressures Persist
Scaramucci also described inflation as a "regressive tax" that disproportionately impacts lower- and middle-income households with limited financial flexibility.
Recent Gallup polling showed that 55% of Americans say their financial situation is worsening, the highest reading recorded since the survey began tracking the metric in 2001. Inflation and high prices remained the top financial concern cited by U.S. households.
The pressure could intensify further if borrowing costs remain elevated. Recent mortgage data showed the average U.S. 30-year fixed mortgage rate climbing back above 6%, adding fresh strain to an already challenged housing market.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
Image: Megan Smith / USA TODAY NETWORK via Imagn
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