US housing affordability remains low despite rising incomes

Despite household income increases across nearly every US state between 2024 and 2025, median incomes remain insufficient to afford a typical home. Data from the US Census and Realtor.com indicate that even in states with significant income growth, such as Rhode Island and Virginia, additional funds are required to purchase median-priced properties.

Realtor.com senior economist Hannah Jones noted that rising mortgage rates, which are more than one percentage point higher than a year ago, have offset affordability gains from rising incomes and softening home prices. Nationally, the median household income was $84,780 in 2025, a 3.8% increase from the previous year. However, with a national median listing price of $419,250 as of September 2026, the median income falls $31,136 short of the recommended amount needed for a purchase, assuming a 7.32% mortgage rate and a 10% down payment.