economy
February 7, 2026
Incomes would need to rise nearly $50,000 for median-priced homes to be as affordable as they were in 2019
Rising home prices and s higher mortgage rates have pushed the income needed to afford a median-priced home up by nearly $50,000 since 2019.
TL;DR
- Home affordability has declined significantly since 2019 due to rising home prices and mortgage rates.
- To return to 2019 affordability levels, household incomes would need to increase by 56% or mortgage rates would need to fall to 2.65%.
- Neither a substantial income rise nor a significant drop in mortgage rates is expected in the near term.
- A nationwide housing shortfall of nearly 4 million homes is a key factor contributing to the affordability crisis.
- Increasing housing supply through construction and policy changes is essential to alleviate affordability pressures.
- Zoning rules and lengthy permitting processes often limit new housing construction.
- Progress in closing the housing supply gap varies significantly by region, with some areas facing decades or even no closure under current trends.
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