U.S. housing affordability: Over 75% of homes unaffordable for typical households

A Bankrate analysis indicates that more than 75% of homes in the United States are unaffordable for the typical household. Under Bankrate’s definition, an affordable home is one where annual housing costs do not exceed 30% of a household's income.

With the typical U.S. home estimated at approximately $435,000, a household requires an annual income of about $113,000 to afford it. This significantly exceeds the 2024 median household income of nearly $84,000 reported by Census data.

The housing crisis is notably impacting first-time buyers. According to the National Association of Realtors, first-time homebuyers represented only 24% of home sales in 2025, a sharp decline from 50% in 2010. Additionally, Zillow estimates that millions of new housing units are required to meet current demand, as high prices, mortgage costs, and limited supply continue to restrict access to homeownership.