Americans need to earn $111,252 per year to afford the typical U.S. home for sale, down 4 percent from $115,870 a year ago, according to a new report from Redfin.
The income needed to buy a home has been declining since November, providing some relief for U.S. homebuyers. Before that, the income needed to afford a home had been rising on a year-over-year basis nearly every month for five consecutive years since the pandemic homebuying boom drove up home-sale prices. The income needed to buy a home peaked at over $122,000 in June 2025.
Redfin considers a home affordable if a buyer taking out a mortgage spends no more than 30 percent of their income on their monthly housing payment. This is ba
