Homebuyer Affordability Improves for Seventh Straight Month

Affordability has improved for buyers in 2026. In April, Americans needed to earn $116,780 to afford the typical U.S. home for sale, according to a recent report from real estate marketing platform Redfin. That’s down 2% from the same time in 2025, when the typical American needed to earn $119,191 to afford a home. With the recent improvement in affordability, the income needed to afford a home has declined on a year-over-year basis for the seventh month straight.

Despite the improvement in affordability, home prices are rising

Although affordability has improved, the median home-sale price rose by 2.4% year-over-year in April. The main reason affordability has improved is due to slowing mortgage-rate growth. The 30-year fixed mortgage rate was 6.33% in April, down from 6.73% a year earlier. Incomes also picked up slightly. The estimated median household income was $87,599 in, up by 4% year-over-year. With this income, a household would need to spend 40% of their income on the median-priced home in April, compared with 42% one year ago.

Homebuying is becoming more affordable in most major metros

Affordability improved nationwide, but on a local level, homebuying affordability improved in 35 of the 50 most populous metros. Chicago led the way; there, homebuyers need to earn $101,075 to afford the median-priced home in April, down 13.3% year-over-year. San Jose, Calif., recorded the second largest improvement in affordability. Buyers in San Jose, Calif., must earn $426,318 per year, down by 5.6% year-over-year, and in Seattle, buyers must earn $219,313, down by 5.5% year-over-year.