In the 1980s, it wasn’t unusual for one parent to stay home while the other’s income covered the mortgage, groceries, and even vacations. But in today’s market, the idea of buying a home on a single income sounds like a fantasy. People are wondering what happened and whether the dream of one-income homeownership will ever return, as home prices are at all-time highs and wages are falling behind. It’s a story of rising costs, stagnant wages, and a nostalgic look at a time when the math made more sense.
What a House Cost Then vs. Now
In 1984, the median home price in the U.S. was around $78,000. Today, it’s over $400,000 according to the National Association of Realtors. Back then, a single income could support a modest mortgage, especially when homes were priced at just two to three times a worker’s annual salary. Today, buyers often need to stretch to six or seven times their income to afford a similar home. The statistics make it abundantly evident that the cost of homeownership has increased beyond what inflation can account for.
Wages Aren’t Keeping Up
In the 1980s, the average annual income for a full-time worker was around $21,000. Adjusted for inflation, that would be about $65,000 today. But many workers aren’t earning that much, especially in single-income households. Even those with decent jobs often find their earnings stretched thin by healthcare, childcare, and loan payments. Meanwhile, housing costs have outpaced wage growth, turning a once-manageable monthly mortgage into a financial tightrope for millions.
Interest Rates Were High, But Home Prices Were Low
One common argument is that interest rates in the 1980s were much higher, with mortgage rates often above 12 percent. That’s true, but because home prices were dramatically lower, buyers still managed. A $70,000 mortgage at 12 percent was still more affordable in monthly payments than a $400,000 loan at today’s 7 percent. Low prices balanced out the high rates. High interest rates and exorbitant prices are the worst of both worlds right now, keeping many people completely out of the market.
The Two-Income Trap Becomes the New Normal
As housing prices climbed in the 1990s and 2000s, two incomes became necessary to compete. That trend hasn’t reversed. Many couples now find that even with both people working full-time, affording a starter home is still a struggle. The pressure has pushed buyers farther into the suburbs, out of state, or into unconventional housing arrangements like multi-family setups or long-term rentals. The dream of a single breadwinner and a family home is now out of reach for most, even among the middle class.
Can One-Income Buyers Still Make It Today?
It’s not impossible, but it takes sacrifice and strategy. Buying in smaller towns, choosing fixer-uppers, or taking advantage of state grants and low-income loan programs can help. Some regions in the Midwest and South still offer modest homes for under $200,000, but these come with trade-offs like limited job markets or fewer amenities. For most Americans in urban or coastal markets, however, one-income homeownership is no longer realistic without substantial savings or family help. The numbers have moved, and so has the dream.