Yingqi Xu reports that Americans need nearly $110,000 annually to comfortably afford a median-priced home.
Yingqi Xu, a Senior Economist at Redfin, reports that the annual income required to comfortably afford a median-priced home in the United States has stabilized at approximately $109,796. This figure represents a marginal 0.5% decrease from the record high of $110,382 set a year ago. While home prices have increased by 2.2%, median household incomes have also risen by 4% to $87,599. Despite these gains, a significant income gap remains for the majorities of Americans. The typical household earns roughly $22,200 less than the amount needed to keep housing costs below 30% of total earnings. Redfin economists noted that while the market has become more manageable for buyers due to increased options and negotiating power, many first-time buyers remain on the sidelines. Affordability improved in 24 of the 46 major metro areas analyzed, with St. Louis, Indianapolis, and Pittsburgh being the only cities where the median household income exceeds the required income to afford a typical home.