Christmas movies, such as “Home Alone” and “Miracle on 34th Street,” feature characters enjoying the joys of the season in now-iconic homes. These homes from holiday movies could be our ideal homes. Could the typical American of today, however, afford to purchase one of these homes?
Nearly every American metro area saw an increase in the median home price, according to the National Association of Realtors. In the first half of 2023, the cost of buying a house increased by 9%. As all of this was going on, average monthly mortgage payments reached all-time highs due to rising interest rates.
When compared to earlier times, the affordability of homes today faces many difficulties, especially those portrayed in classic Christmas films. The sharp rise in real estate prices than household incomes is one of the main causes of this problem.
The cost of housing has increased dramatically over time, outpacing many families’ income growth. High mortgage interest rates are a significant barrier simultaneously Despite not being regarded as liquid assets, homes account for a sizable portion of the average American’s net worth.
In order to assess affordability, six classic holiday movie home prices were compared to the average income in a Financial Freedom Countdown study.
The Connecticut house in “The Family Stone” depicts the Stone family’s exciting holiday get-together and is estimated to be worth $3.9 million, with a monthly payment of $31,842. In Riverside, the typical household income is merely $250,000.
The sentimental and entertaining story of young Ralphie Parker’s search for the ideal Christmas present—a Red Ryder BB gun—is told in “A Christmas Story.” Cleveland, where the median income is $37,351, is home to the famous house in the film. The last time the house in the movie was sold, it went for $150,000 in 2005. The adventures of eight-year-old Kevin McCallister are chronicled in “Home Alone.” The half-acre Georgian home was filmed in Illinois, and its estimated market value is $2.39 million. The average American living in a city with a median income of $250,100 would find it impossible to afford the estimated $18,014 monthly payments.