Overview
- The Redfin analysis for June shows Americans now need about $109,796 a year to afford the typical U.S. home, roughly $22,197 more than the median household income of $87,599.
- The share of listings affordable to a median earner rose to about 34.2% in June, up from roughly 30.5% a year earlier, reflecting small gains in available lower‑priced homes.
- Starter homes improved faster: buyers need about $70,693 to afford a typical entry‑level home and the typical household now earns nearly $17,000 more than that threshold.
- Mortgage rates have stayed elevated in the mid‑6% range and climbed near 7% at the end of July, a factor that limits larger affordability gains and could reverse recent improvements.
- Affordability is concentrated in a few states such as Louisiana, Iowa, and Minnesota, and continued progress hinges on price trends, wage growth, and future moves by the Federal Reserve.