Required income for the median home was 0.5% below last year's record, while the starter-home threshold fell 1.5%; affordability remained strained overall despite some easing and wide regional gaps.
Americans needed to earn $109,796 to afford the typical U.S. home for sale in June 2026, according to Redfin, down 0.5% from an all-time high of $110,382 a year earlier, while the income needed to afford a typical starter home fell 1.5% to $70,693. Redfin defines affordability as spending no more than 30% of income on monthly housing payments for a mortgaged home, based on sale prices, mortgage rates, property taxes and a 15% down payment; starter homes are those in the 5th to 35th percentile for sale prices. The required income for the overall market still exceeded the estimated median U.S. household income of $87,599 by $22,197, though that gap narrowed as household income rose 4% year over year, while the typical household earned about $17,000 more than required for a starter home, up from roughly $12,500 a year earlier. Affordability remained strained because home prices stayed near record highs and mortgage rates were elevated, with June rates in the mid-6% range and rates rising further to near 7% by late July, but Redfin said conditions have become somewhat more manageable in some markets and for entry-level buyers. Buyers would need to devote 37.6% of income to buy the median-priced home, down from 39.3% a year earlier, and 34.2% of listings were affordable to someone earning the median income, up from 30.5%. Metro-level data showed improvement in some markets, including Austin for starter homes and Seattle for the broader market, while many California metros remained largely out of reach for typical local earners.