Here's the income needed to afford the typical American home

Key Points:

• The income needed to afford a typical U.S. home remains near historic highs at $109,796 as of June, slightly down 0.5% from last year's peak, but still significantly above the median household income of $87,599.
• Despite a modest 2.2% increase in median home prices and a slight drop in mortgage rates to the mid-6% range, the affordability gap persists, with many first-time buyers unable to comfortably afford homes.
• The share of affordable home listings rose from 31% to 34% compared to last year, yet remains well below pre-2022 levels when over half of listings were affordable to typical American households.
• Affordability improved in 24 of 46 metro areas, with Seattle, San Jose, and Portland seeing the largest declines in required income to afford median homes, though in high-cost areas like San Jose, typical incomes still fall far short of housing costs.
• Only three metro areas—St. Louis, Indianapolis, and Pittsburgh—have typical household incomes that exceed the income needed to afford the median-priced home, highlighting regional disparities in housing affordability.