In April, Americans needed to make $116,780, a 2% decrease from $119,191 a year earlier, to afford the average U.S. home for sale, according to Redfin. The cost of purchasing a home has decreased year over year for the seventh consecutive month in April.
If a buyer taking out a mortgage would spend no more than 30% of their salary on their monthly housing payment, Redfin deems the house reasonable. The most current period for which data is available is April 2026, which is the subject of this article.
Affordability is only marginally better, though, as the median home-sale price increased 2.4% year over year in April. It should be noted that the average weekly mortgage rate increased to 6.51% in May. Homebuyers who lock in a rate now might not find the market to be more affordable than it was a year ago due to that increase.
In 2022 and 2023, the amount of money needed to purchase a home increased due to the pandemic homebuying craze, and mortgage rates doubled. The income required to purchase a home has been steadily declining since October 2025, and the trend is now gradually reversing. Even yet, it is nearly $29,000 more than the average household income of $88,000 in the U.S.
Because monthly housing expenses are falling and wages are rising, homebuying affordability has improved:
- Housing costs came down in April because the average 30-year fixed rate was lower than a year earlier; April’s monthly average was 6.33%, down from 6.73%.
- The estimated median household income was $87,599, up 4% year-over-year.
“Americans still need a six-figure income to afford a regular home, but it’s encouraging that affordability is gradually improving,” said Redfin Economist Grishma Bhattarai. “House hunters who have been waiting on the sidelines may want to start paying close attention: In addition to costs coming down, there are still more homes on the market than there were a year ago, many more sellers than buyers, and more room for buyers to negotiate. Buyers are starting to notice: Pending home sales jumped in early May, which may lead to more bidding wars and bigger price increases.”
Home Cost Playing a Large Part
Although it’s generally accepted that your monthly housing cost should not exceed 30% of your salary, this isn’t practical for everyone. The median-priced U.S. home would cost the average American homebuyer 40% of their salary. Fortunately, that is less than 42.4% from a year earlier.
Redfin experts predict that this year will see a minor improvement in house affordability. However, it might be derailed if the Fed raises interest rates, the Iran war keeps driving up oil prices, or the economy is hit by another shock.
The percentage of home listings that are affordable, meaning they would require no more than 30% of income to be spent on housing, has improved over the past year, which is another approach to look at improving affordability. In April, one-third (32.9%) of U.S. real estate listings were within the reach of a person making the median income, an increase from 28.7% the previous year.
However, the number of postings for reasonably priced homes has significantly decreased. In statistics going back to 2013, almost every month, more than half of U.S. home listings were within the reach of the average American before mortgage rates skyrocketed in 2022.
In 35 of the 50 most populated U.S. metro regions, the cost of buying a home is getting better. Of the 50 most populous U.S. metro areas, Chicago had the largest reduction, with homebuyers needing to earn $101,075 in April to afford the median-priced property, down 13.3% year-over-year. The second-largest increase in affordability was seen in San Jose, CA,: There, buyers must make $426,318, which is 5.6% less than the previous year. Seattle, WA, completes the top three, requiring purchasers to make $219,313, a 5.5% decrease.
There are nine metros—all in the eastern half of the U.S.—where the typical household earns more than what’s required to afford a home:
- Baltimore
- Cincinnati
- Cleveland
- Detroit
- Indianapolis
- Minneapolis
- Pittsburgh
- St. Louis
- Warren, MI
In April, San Francisco homebuyers needed an income of $443,979 to afford the median-priced local property, up 7% from the previous year. This was the highest income necessary and the largest rise of the metro areas Redfin examined. This is because property prices in San Francisco are skyrocketing, in part because of the AI growth.
Overall, Philadelphia (5.7% to $85,541) and Providence, RI (4.7% to $143,195) saw the next largest gains. In all, there are only seven seller’s marketplaces nationwide, including Providence.
To read the full report, click here.
