{
  "id": 232628,
  "title": "Think you can afford a home? Here’s the salary experts say you now need",
  "url": "https://urgent.news/2026/08/06/think-you-can-afford-a-home-heres-the-salary-experts-say-you-now-need",
  "topic": "world",
  "section": "World",
  "published": "2026-08-06T18:39:04.000Z",
  "source": {
    "name": "Fast Company",
    "slug": "fast-company",
    "url": "https://www.fastcompany.com/91586237/think-you-can-afford-a-home-heres-the-salary-experts-say-you-now-need"
  },
  "original_language": "en",
  "account": "The amount of income required to secure a typical home in the United States has seen a slight reduction, according to a recent report from Redfin. To purchase the median-priced U.S. home in June, an annual income of $109,796 was needed, slightly down from the record high of $110,382 last year. Redfin defines a home as affordable if a mortgage payment consumes no more than 30% of a buyer's income.\n\nThis income requirement remains essentially unchanged from a year ago, as inflation and wage growth have been increasing at similar rates. However, experts emphasize that even with this drop, homes are not affordable for the average American household. The income needed to afford a typical home is still more than $22,000 higher than the $87,599 average earnings for a U.S. household. Consequently, prospective buyers would have to dedicate 38% of their income to housing, well above the 30% guideline.\n\nDespite these challenges, there are signs that buying a home is becoming more attainable, particularly for first-time buyers. A separate Redfin report revealed that Americans now need to earn $70,693 to afford the typical U.S. starter home, which represents a 1.5% decrease from last year and marks eight consecutive months of improvement in starter-home affordability. However, affordability for entry-level buyers is still limited, and finding the right starter home remains a challenge.\n\nPositive trends in housing affordability are observed in several major U.S. metropolitan areas. Redfin economists have dubbed 2026 as \"the great housing reset,\" and predict that housing affordability could continue improving by the end of the year. In June, 34% of U.S. home listings were considered affordable for someone earning the median income – an increase from 30.5% a year earlier.\n\nAdditionally, location plays a significant role in housing affordability. In June, 34% of U.S. home listings were deemed affordable, up from 30.5% a year prior. The income required to afford a typical home in June has decreased in many locations, particularly in hotspots of pandemic homebuying such as Nashville and Austin. However, these cities still require more than 30% of a buyer's income for housing costs.\n\nAffordability improvements are evident in more than half of the 46 major U.S. metro areas analyzed by Redfin. In high-cost areas like Seattle, San Jose, and Portland, housing affordability has improved, with the income needed to purchase the median-priced home declining in the past year. However, only three major metro areas – St. Louis, Indianapolis, and Pittsburgh – now require a higher income to afford a home than the typical household earns.\n\nStill, Pittsburgh is among six metro areas where housing costs are close to or below the 30% threshold, with over 50% of listings being affordable for median-earning households. This includes Detroit, St. Louis, Pittsburgh, Indianapolis, Baltimore, and Cleveland, where the housing market has become a bit more manageable for prospective buyers.",
  "summary": "There’s good news and not-so-good news for prospective homebuyers: The amount of income needed to afford a typical American home is down slightly from last year—but it’s still well above what many households earn. To purchase the median-priced U.S. home on the market in June, Americans would need an annual income of $109,796, down slightly from last year’s record high of $110,382, according to a…",
  "key_points": [
    "Annual income of $109,796 needed for median-priced U.S. home in June 2023.",
    "Income requirement slightly down from $110,382 in 2022 despite inflation and wage growth.",
    "38% of income required to afford typical home, above 30% guideline for affordability."
  ],
  "editors_take": "The slight drop in income required to secure a typical US home doesn't change that housing remains unaffordable for the average American household, though first-time buyers and some metro areas see improving prospects.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}