The Income Needed to Afford Typical American Home Holds Steady Near Record High of $110,000
Redfin reports that the annual income required to afford a typical U.S. home stands at $109,796, slightly down from a record high but still roughly $22,000 above the median household income. The affordability gap is narrowing as wages rise faster than housing costs, with the share of income needed for monthly payments dropping to 37.6% from 39.3% a year ago.
Key figures
- Gap prior year
- 26125
- Affordability gap
- 22197
- Gap two years ago
- 28834
- Mortgage rate range
- mid-6%
- Median household income
- 87599
- Income needed prior year
- 110382
- Affordable listings share
- 34.2%
- Income share housing cost
- 37.6%
- Income needed starter home
- 70693
- Income needed typical home
- 109796
- Median home price change yoy
- 2.2%
AI analysis
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AI-generated analysis of a public disclosure. Not investment advice; verify against the original document.