Overview
- Redfin’s June 2026 analysis shows Americans need about $109,796 a year to afford the median U.S. home, roughly $22,200 more than the typical household earns.
- The share of listings affordable to a median earner rose to about 34.2% from 30.5% a year earlier, reflecting modest stabilization in the market.
- Starter homes improved faster, with the income needed falling to $70,693 and the typical household now earning more than what’s required for entry‑level properties.
- Mortgage costs remain a brake on broader relief because 30‑year rates have climbed back into the mid‑6% range, reaching about 6.66% at the end of July and narrowing recent affordability gains.
- Affordability varies sharply by place: only three states meet a 30%‑of‑income test and high‑cost California markets require vastly higher incomes, while some lenders are offering very low down‑payment programs to help buyers bridge the gap.