"Housing affordability has since fallen to record lows after two years of price growth, with the typical home selling for $440,000 in August. Even with mortgage rates , buyers still need to earn over $112,000 annually to afford a median-priced home - roughly $25,000 more than the typical household income and three times what they needed in 2012. The ? Slower sales, fewer listings, and hardly any buyer activity."
"As of September 2025, buyers need to earn about $50,000 to comfortably afford a $200,000 house . This assumes a 20% down payment on a median-priced home ($444,000), a 6.4% mortgage rate, and typical tax and insurance costs. You can calculate your specific monthly housing costs using Redfin's Mortgage Calculator . It's worth noting that many buyers shopping in the $200,000 range may earn less than their city's median income,"
Median U.S. home prices rose from $190,000 to $440,000 over thirteen years, pushing affordability to record lows. Buyers now often need over $112,000 annually to afford a median-priced home, roughly $25,000 above typical household income. Slower sales, fewer listings, and low buyer activity accompany these conditions. Affordable options persist in many Midwest, Southern, and Northeastern areas, with some homes below $200,000 or in the low-$100,000s. As of September 2025, buyers generally need about $50,000 income to comfortably afford a $200,000 house under typical down payment and rate assumptions. Local median incomes affect real affordability.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
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