U.S. Households Need 70% Higher Income to Afford Homes

The income required to purchase a median-priced home in the United States has surged by approximately 70% over the past six years, now standing at about $114,000 annually, compared to just over $67,000 in 2019. This dramatic increase is fueled by a combination of rising home prices and higher mortgage rates, with the median listing price reaching $431,250 in April 2025. Despite a 30.6% year-over-year increase in active home listings, buyer activity remains subdued, and inventory levels are still below pre-pandemic norms. The typical household income, at just over $80,600, falls significantly short of what is needed, underscoring an ongoing affordability challenge. Particularly high income requirements are seen in metros such as San Jose, Los Angeles, and San Francisco, and some cities have seen required incomes nearly double since 2019. Although more listings are experiencing price reductions, offering a glimmer of hope, the housing market continues to present significant barriers for most American families.