Single-Family Home Prices Grow in Q1 2025

During the first few months of the year, home prices grew in a majority of the most populous metros. According to data from the National Association of Realtors, the nationwide median price for a single-family home grew by 3.4% in Q1 2025, and price increases were felt across 83% of the largest 228 metro areas. Among metro areas, Topeka, Kan., had the largest annual price gain in Q1 2025 at 19.8%, followed by Peoria, Ill., which saw prices rise by 18.4% year-over-year, and Champaign-Urbana, Ill., which recorded a year-over-year price increase of 17.9%.

While the median family income required to qualify for a home dipped slightly at the end of 2024, actual median family incomes rose in early 2025. By Q1 2025, the annual median income had increased to $104,281 from $99,798 the year prior.

For the U.S., at the 5% down payment threshold, the qualifying income amount for the first quarter of 2025 was $120,819. At the 10% down payment mark, the qualifying income was $114,460. With a 20% down payment, the income required to qualify for a mortgage was $101,743. The West led all regions in terms of the highest qualifying income, while the Midwest had the lowest qualifying income for 5%, 10%, and 20% down payments on a single-family home.