Redfin Reports the Income Needed to Afford a Home Declined For Seventh Straight Month in April
Homebuying affordability improved slightly in April because mortgage rates declined while incomes rose. Still, the income required to afford a home was $29,000 higher than the typical U.S. income—and mortgage rates rose again in May, potentially erasing some of the affordability gains made in April.
A household earning the average U.S. income would need to spend 40% of their income on the median-priced home, down from 42% a year ago
33% of home listings are affordable, up from 29% a year ago—but down from more than 50% five years ago
Americans needed to earn $116,780 to afford the typical U.S. home for sale in April, down 2% from $119,191 a year earlier. That’s according to a new report from Redfin, the real estate brokerage powered by Rocket.
