Home affordability is improving, with Americans needing to earn $111,252 per year to afford the typical U.S. home for sale, down 4% from $115,870 in 2025. The income needed to buy a home has been declining since November, providing some much-needed relief for U.S. homebuyers. Monthly housing costs are lower than they were a year ago, with average mortgage rates sitting around 6.1%, down from nearly 7% last year.
Affordability is improving fastest in Dallas, where the income needed to buy a home has dropped 7.4% year over year. Next come Sacramento and Jacksonville, where the income required declined by roughly 6% in both places.
