Income Needed to Buy a Home Holds Near Record High, Redfin Says

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The affordability gap is shrinking, but Redfin’s latest estimate shows many borrowers still need more income than the typical household earns.

The income needed to buy a home is still hovering near a record high, according to a Redfin News report published August 5, 2026. Redfin said a household needs about $110,000 to afford a typical U.S. home, even as the gap between required income and typical household income has narrowed.

For mortgage professionals, the report puts numbers behind what borrowers are feeling in real preapproval conversations. Housing costs keep rising, but so do incomes, leaving affordability tight rather than meaningfully easier for many buyers.

Key takeaways

• Redfin says the income needed to buy a typical U.S. home is about $110,000.
• That figure is largely unchanged from last year’s record high, according to the report.
• The required income is roughly $22,000 above what the typical U.S. household earns.
• The gap has narrowed from $26,000 a year ago and $29,000 two years ago.

Sources

• Redfin News — The Income Needed to Afford Typical American Home Holds Steady Near Record High of $110,000

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