U.S. homebuyers now need an annual income of $109,796 to afford the typical home, while the median household earns $87,599. Based on June 2026 data, the gap has narrowed from previous years, but elevated monthly costs continue to limit purchasing power. The figures also reveal sharp differences among major metropolitan areas.
Key Takeaways
- The estimated income needed to afford the typical U.S. home was $109,796 in June 2026.
- That threshold exceeded estimated median household income by $22,197.
- Only 34.2% of listings were affordable to a median-income household.
- St. Louis, Indianapolis and Pittsburgh were the only metros where typical incomes cleared the threshold.
U.S. homebuyers faced a near-record affordability threshold in June 2026, even as the gap between earnings and housing costs narrowed. A Redfin analysis found that buyers needed to earn $109,796 annually to afford the median-priced home, down 0.5% from the record $110,382 required one year earlier.
The analysis defines affordability as spending no more than 30% of income on monthly housing costs. Its calculation uses median sale prices, mortgage rates and property taxes, with a 15% down payment.
The $22,197 Income Gap Defines the Market
The central pressure point is the difference between the required income and what households typically earn. Estimated median household income reached $87,599, up 4% from a year earlier, but remained $22,197 below the amount needed to meet the affordability standard.
That gap stood at $26,125 one year earlier and $28,834 two years earlier.
“The earnings needed to buy a house have stabilized after several years of deterioration,” Redfin Senior Economist Yingqi Xu said. Conditions are no longer worsening at the pace seen during the sharp rate and price adjustments of 2022 and 2023, but the typical home remains beyond the benchmark for the typical household.
The median U.S. home sale price increased 2.2% year over year in June. Mortgage rates eased slightly from the previous year but stayed in the mid-6% range, keeping required income close to its record.
Recent spring mortgage rate pressure also shows why modest rate changes can affect monthly payments.
More Listings Qualify, but Most Remain Unaffordable
The share of listings considered affordable rose to 34.2% in June, compared with 30.5% a year earlier. Median-income households had more qualifying options than in June 2025, but nearly two-thirds of listings remained outside the affordability limit.
A typical household would have needed to devote 37.6% of income to the monthly cost of the median-priced home. That share declined from 39.3% one year earlier, largely because estimated household income rose from $84,257 to $87,599.
The market therefore became somewhat more manageable without becoming broadly affordable. Before mortgage rates rose sharply in 2022, more than half of U.S. listings were affordable to the typical household in nearly every month of records dating to 2013.
Entry-level properties carried a lower threshold. Buyers needed an estimated $70,693 to afford the typical starter home, down 1.5% year over year. Data on starter-home inventory gains indicates that availability has improved from recent lows, although supply and financing conditions still differ by region.
Regional Shifts Create Uneven Buying Conditions
Affordability improved in 24 of the 46 major metropolitan areas analyzed. The largest declines in required income appeared in several West Coast markets where prices had softened, though those areas remained among the country’s most expensive.
Seattle buyers needed $221,831, down 7.4% from a year earlier. San Jose required $423,840, down 6.5%, while Portland required $153,844, down 4.5%. In San Jose, median household income was estimated at $176,401, leaving a gap of about $247,000.
The opposite pattern appeared in several markets. Pittsburgh’s required income rose 6.3% to $82,816. San Francisco increased 6.2% to $453,205, the highest threshold in the analysis, while West Palm Beach climbed 5.6% to $146,404.
Only St. Louis, Indianapolis and Pittsburgh had estimated median household incomes above the amount needed to afford the typical local home. Local prices, earnings, taxes, insurance and inventory can produce substantially different outcomes.
Frequently Asked Questions
How Much Income Is Needed to Afford the Typical U.S. Home?
The analysis estimated that a household needed $109,796 in annual income in June 2026. The figure assumes a 15% down payment and housing costs equal to no more than 30% of income.
How Far Below the Threshold Is the Typical Household?
Estimated median household income was $87,599, which was $22,197 below the required amount. The gap was smaller than it had been one and two years earlier.
What Share of U.S. Listings Was Affordable?
About 34.2% of listings met the affordability standard for a median-income household in June. That was higher than 30.5% in June 2025, although most listings still exceeded the benchmark.
Which Major Metros Cleared the Affordability Threshold?
St. Louis, Indianapolis and Pittsburgh were the only major metros where estimated median household income exceeded the required amount. Other markets came close but remained below it.
What Does the Data Mean for U.S. Homebuyers?
U.S. homebuyers have gained some options as income growth and selected price declines narrow the affordability gap. The national threshold remains close to a record, so local costs and household finances continue to determine what buyers can afford.
The June data presents modest improvement alongside a persistent earnings mismatch. U.S. homebuyers may find more listings and stronger negotiating conditions in some areas, yet the typical household still falls well short of the income associated with the median-priced home.
