Redfin Says Americans Need $116,780 to Afford Average U.S. Home as Median Income Trails by $30,000
Updated
Updated · CBS New York · May 27
Redfin Says Americans Need $116,780 to Afford Average U.S. Home as Median Income Trails by $30,000
8 articles · Updated · CBS New York · May 27
$116,780 a year is now needed to afford the average U.S. home, Redfin said, while median household income in April was about $88,000—leaving a gap of nearly $30,000.
A typical home costs nearly $418,000, and a household earning the national median would have to spend 40% of income on it, above the common affordability guideline of 30% after a 15% down payment.
Affordability has improved slightly from a mid-2025 peak near $122,000 because wages are rising about 4% and mortgage rates have eased, but Oxford Economics said homebuying is likely to remain unaffordable for much of the next decade.
In 41 of the 49 most populous U.S. cities, the median salary still is not enough to buy a home; San Francisco requires nearly $444,000 and San Jose about $426,000, while Detroit is among eight cities where $88,000 is enough.
Why are a record number of homes sitting unsold while millions of Americans are desperate to buy?
As Baby Boomers dominate the housing market, what new paths to ownership are younger generations creating?
The 2026 U.S. Housing Affordability Crisis: Why the 30% Income Rule Is Out of Reach for Many Americans
Overview
As of May 2026, the U.S. housing market faces ongoing affordability challenges, with many buyers struggling to keep monthly payments below 30% of their income. While housing starts in April 2026 reached 1.465 million—within the healthy range of 1.2 to 1.5 million—this steady construction has not fully eased the pressure on buyers. The persistent gap between income levels and rising home costs means that, despite stable building activity, many households still find it difficult to achieve affordable homeownership. This highlights the complex balance between supply, demand, and financial benchmarks in today’s market.