>> so to afford the AVERAGE home in America You're assuming they have no equity. Close to 40% of homeowners have their houses paid off. If they want to move up

>> so to afford the AVERAGE home in America You're assuming they have no equity. Close to 40% of homeowners have their houses paid off. If they want to move up to a more expensive house, the 68K income needs to finance the difference in price between their current house and the new one, not the entire amount. If you're buying your first home on 68K income, you are not going to be buying a 400K house. You're going to be buying a "starter home" with a 5% down payment. Or even 3%.