The household income required to afford a typical U.S. home has decreased for the seventh consecutive month, according to a May 26 report from Redfin. In April, households needed to earn $116,780 to buy a median-priced home, down from $119,191 in April 2025. The peak income threshold of $122,000 was recorded in mid-2025. Despite this improvement, the median U.S. household income of $88,000 remains insufficient to afford a home in 41 of the 49 most populous cities, Redfin found.
Part 1: Immediate Action & Core Facts
The median home price in the U.S. stands at $418,000, according to the National Association of Realtors. A household earning the average U.S. income would need to spend 40% of its income on the median-priced home, exceeding the recommended 30% threshold. Experts warn that homebuying affordability is unlikely to improve significantly over the next decade.
Part 2: Deeper Dive & Context
Regional Disparities
The affordability crisis varies widely by region. In San Francisco, the priciest city for homeownership, a household would need to earn $444,000 to afford a home, more than five times the median salary. The median sales price in San Francisco reached $1.7 million in March. Similarly, in San Jose, residents need an income of $426,000. By contrast, eight cities, primarily in the Midwest, remain affordable for median-income earners. In Detroit, the required income of $56,219 is below the city's median income of $65,687.
Economic and Market Factors
The decline in the income threshold is attributed to a 4% increase in U.S. workers' pay this year, with median household income reaching $88,000 in April. However, this remains $30,000 short of the required income for homeownership. Housing inventory in high-demand areas like Silicon Valley has failed to keep up with demand, driven by the AI boom attracting more tech workers.
Expert Perspectives
Nancy Vanden Houten, lead U.S. economist at Oxford Economics, stated that homebuying in the U.S. continues to be unaffordable, with no significant improvement expected in the near future. Redfin's data underscores the persistent gap between median incomes and home affordability, particularly in high-cost urban areas.