Americans now need to earn approximately $110,000 annually to comfortably afford a typical home in the United States, according to a recent report by Redfin. This figure, reflecting the income required for a median-priced home in June 2026, is just 0.5% lower than last year’s record high. Meanwhile, the median U.S. household income in June was nearly $88,000, marking a 4% increase from the previous year.
The report highlights that affordability has improved in 24 out of the 46 major metro areas analyzed. Notably, Seattle experienced the most significant improvement, with the required income to afford a typical home dropping by 7.4% compared to the previous year, as home prices fell.
Redfin’s analysis also indicates that while affordability for starter homes is improving slightly faster than for the overall market, the disparity between income and housing costs remains a challenge. The income needed to afford a starter home decreased by 1.5% year-over-year to $70,693. However, elevated mortgage rates near 7% continue to strain affordability.
In contrast, some regions, such as California, still face significant affordability challenges. In cities like San Francisco, Los Angeles, and San Diego, the cost of starter homes remains out of reach for many locals, with median home prices far exceeding local median incomes.
Looking ahead, Redfin suggests that while housing affordability could improve slightly by the end of the year, factors such as potential interest rate hikes, oil price increases, and inflation could further impact the market.
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