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Income needed to afford a typical US home stays near record high

Redfin estimates June 2026 affordability requires $109,796 in income, down 0.5% from a year earlier but still $22,197 above the typical household income.

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Americans need to earn $109,796 to afford the typical US home for sale in June 2026, which is down 0.5% from an all time high of $110,382 a year earlier, according to a Redfin analysis.

Redfin uses the 30% rule, assuming a buyer spends no more than 30% of income on the monthly housing payment, based on median home sale prices, prevailing mortgage rates, and property tax payments, with 15% down.

While the required income has been dropping since October 2025, Redfin says it remains $22,197 higher than the typical US household income of $87,599, and the income gap is narrowing, with a $26,125 shortfall one year ago and a $28,834 shortfall two years ago.

Redfin Senior Economist Yingqi Xu said affordability has stabilized but homes are still not affordable for the average household, even as it has become “a bit more manageable” because many areas are described as buyers market conditions, Redfin also cautions affordability could improve slightly by year end or worsen if rates rise further, oil prices jump, or inflation increases.

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