Redfin has found that the typical U.S. household earns $29,448 less than it needs to afford the median-priced home—marking an improvement from October, when the typical household earned a record $40,810 less than it needed. That’s based on a Redfin analysis of the estimated median U.S. household income and median monthly housing payments as of February 2024.
Buyers need to earn $114,000 to afford the typical U.S. home—35 percent more than the typical household makes. But that’s also an improvement from October, when buyers needed to earn a record $121,000, or 51 percent more than the median household income.
Per Redfin, February 2021 was the last month on record when the typical household earned more than it needed to afford the median priced home. Back then, the median household income was $69,021—6 percent higher than the $65,292 needed to afford the typical home.