Here's how much Americans need to earn to afford the median-priced home
FILE-A house is for sale in Arlington, Virginia. (Photo by SAUL LOEB/AFP via Getty Images)
Home prices are stable, but mortgage rates spiked last month amid uncertainty in the market tied to U.S. trade and economic policies.
While these factors may affect buyer and seller activity in 2025, the money needed to buy a home is still substantially higher now than before the pandemic, according to a Realtor.com report.
How much do I need to afford a home?
By the numbers:
In April, the national median list price for a home was $431,250, and to afford a median-priced home in that month, a household had to earn roughly $114,000 annually and $9,500 monthly before taxes to cover the cost of the mortgage, property taxes, and insurance on a home.
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Realtor.com noted that income needed to buy a home now skyrocketed by almost $47,000 fueled by home price appreciation and higher mortgage rates. But in the past year, the required income was steady with mortgage rates and median home prices leveling off.
Dig deeper:
Asking prices for homes are still high and more sellers are making price cuts. Last month, 18% of home listings had lower prices, which implies that sellers are adjusting their expectations despite struggles with housing affordability and weaker consumer demand in specific housing markets.
Which areas had the highest spikes in income needed to buy a house?
Why you should care:
The required income to buy a home has jumped in many areas but specifically in Memphis (+94.8%), Providence (+92.8%), and Las Vegas (+86.5%).
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Meanwhile, cities that had homes in the market with price cuts connected to slower demand, include Phoenix (31.3% of listings), Tampa (29.3%), and Jacksonville (27.6%)
Data for Realtor.com’s latest report consists of housing data from April 2025 along with housing listings that include active housing inventory of existing single-family homes and condos, townhomes, and row homes.
The Source: Information for this story was provided by Realtor.com, which used housing data from April 2025 and home listings that include existing family homes. This story was reported from Washington, D.C.