A new Redfin report finds that the income needed to afford a typical US home held steady near record highs at $109,796 as of June, down just 0.5% from the all-time high of $110,382 reached last year. While the figure has been declining since October 2025, the decreases remain small and the gap between typical household income and housing costs stays wide.

The median US household income of $87,599 remains $22,197 below what is needed to comfortably purchase a median-priced home. The median home sale price rose 2.2% year over year in June, while mortgage rates hovered in the mid-6% range. The 30-year fixed mortgage rate climbed to 6.71% in the latest Freddie Mac data, up from 6.66% the prior week.

For Houston homebuyers, the affordability picture reflects both national trends and local market dynamics. Houston has historically benefited from relatively affordable housing compared to coastal markets, but rising property taxes, insurance premiums, and construction costs have eroded that advantage in recent years.

Redfin senior economist Yingqi Xu noted: ‘There’s still a double-digit gap between what the typical household earns and what they need to comfortably buy a home, leaving many prospective first-time buyers stalled on the sidelines. But even if the market isn’t becoming much more affordable, it is becoming a bit more manageable for house hunters.’

The share of affordable listings on the market — defined as a buyer’s mortgage not consuming more than 30% of income — rose from 31% last year to 34% in June. However, that figure remains far below pre-2022 levels, when over half of US home listings were affordable to the typical American.

Nationally, income growth has outpaced home price growth, with median household income up 4% year over year compared to the 2.2% increase in median home sale prices. Affordability improved in 24 of the 46 metro areas tracked by Redfin, with Seattle, San Jose, and Portland seeing the largest declines in required income.

Only three metro areas — St. Louis, Indianapolis, and Pittsburgh — have typical household incomes exceeding what is required to afford the median-priced home, the report found.

Source: Fox Business