Households Need $117,000 Annual Income to Afford Average U.S. Home, Redfin Reports

Redfin reported that households must earn about $117,000 per year to qualify for a mortgage on the average U.S. home under current market conditions. The calculation uses prevailing 30-year fixed mortgage rates, median home prices, and standard debt-to-income limits applied by lenders.

Redfin derived the $117,000 threshold by applying a 28 percent front-end debt-to-income ratio to estimated monthly housing costs that include principal, interest, taxes, and insurance. The analysis assumes a 20 percent down payment and uses the national median sale price for existing homes.

Redfin noted that the income figure varies significantly by metropolitan area, with coastal markets requiring substantially higher earnings.