economy
March 7, 2026
Middle-income homebuyers have $30,000 more buying power than a year ago, research finds. It's still not enough
While the amount that a median-income household can afford is higher than it was a year ago, it is still below the median price for a single-family home.
TL;DR
- Median-income households can now afford a home valued at $331,483, an increase of $30,302 from the previous year.
- Improved affordability is partly attributed to a decrease in average 30-year fixed mortgage rates.
- Despite the increase in buying power, affordability is still strained as the affordable home value is below the median home price.
- Home values have risen faster than household incomes since 2000, and mortgage rates have significantly increased since mid-2021.
- Increased home inventory by 6% in January offers some relief, but a broader housing shortage persists.
- Additional potential buyers in the market could drive up home prices if housing supply does not increase.
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