Report: $110,000 income now needed to afford typical U.S. home

Americans needed to earn about $110,000 a year to comfortably afford a typical home in June 2026, according to a Redfin analysis, just 0.5% below last year's record high. The median U.S. household income that month was nearly $88,000, up 4% from a year earlier, leaving a persistent gap between wages and housing costs.

Affordability improved in 24 of the 46 major metro areas Redfin tracked. Seattle saw the biggest gain, with the income needed to afford a typical home there falling 7.4% from a year earlier as home prices declined.

Starter-home affordability improved slightly faster than the overall market, with the income needed to buy a starter home dropping 1.5% year-over-year to $70,693. Mortgage rates near 7% continue to weigh on affordability, and cities including San Francisco, Los Angeles and San Diego remain far out of reach for many local buyers on starter-home budgets.

Redfin said affordability could improve modestly by year's end but flagged risks including potential interest rate increases, higher oil prices and inflation.

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