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Median home affordability requires income above $120,000 in 2026

HousingWire cites a forecast that mortgage rates stay near 6.5% through year-end, so seasonal cooling is unlikely to materially lower the cost of buying a median-priced home.

Reported · Written up by our desk · Residential

HousingWire reports that affordability for a median-priced U.S. home has deteriorated sharply, with the income needed to afford the payment rising to more than $120,000 in its 2026 State of the Nation’s Housing report, up from $66,000 in 2020. The article says that over six years, the salary required to buy has nearly doubled, contributing to a growing sense that homeownership is out of reach for many buyers.

The piece argues that waiting until fall is unlikely to deliver significant relief, pointing to Mortgage Bankers Association expectations for rates to hold near 6.5% through the end of the year, alongside a similar outlook from Fannie Mae. It adds that the median home price hit a record in June, marking 36 straight months of year-over-year increases, even as price growth remains slow.

HousingWire also notes that fall typically brings a seasonal lull, with fewer crowded open houses, but it says the market is still likely to feature similar rates and prices. The column cautions that if rates do drift lower, sidelined buyers could return quickly, reducing negotiating leverage in a better-stocked market.

On preparedness, the article highlights that nearly half of consumers believe they need a down payment of 16% or more, while the typical first-time buyer has put down between 6% and 9% since 2018, and has not exceeded 10% in more than three decades of record-keeping. It says zero- and low-down-payment programs are available across the market, including some conventional loans that may come without private mortgage insurance.

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