Redfin: June homebuyers needed about $109,796 in income to afford a typical US home, slightly below 2025 peak

Housing affordability in the United States remained near recent highs, according to a Redfin calculation highlighted in a report published Monday. The measure estimates the income a household needs to purchase a “typical” home for sale based on prevailing mortgage rates, home prices, and ongoing monthly housing costs.

In June, Redfin estimated the income required to afford a typical home at $109,796. The figure was described as marginally lower than a prior record high of $110,382 reached in 2025, suggesting affordability has not significantly improved or deteriorated versus the recent peak level.

The Redfin framework underlying the estimate links monthly housing costs to household incomes over time. In the report discussed by Zero Hedge, the calculation indicates that housing affordability has stayed “largely flat” year over year because increases in monthly housing costs and increases in people’s incomes have moved at a similar pace.

The report’s description also frames the measure as a practical report for potential buyers, focusing on the income needed to cover the costs associated with purchasing a typical listing rather than on home prices alone. In that context, even small changes in required income can reflect shifts in the balance between mortgage carrying costs and overall earnings.

For households, the difference between the June estimate and the 2025 high highlights the limited room for marginal buyers when affordability is already near its peak level. A lower required income reading suggests slight improvement versus the prior year’s record, but the closeness of the figures also indicates that affordability remains constrained for many prospective buyers.

For policymakers and regulators monitoring housing market conditions, the Redfin-based affordability measure provides an at-a-glance view of the relationship between borrowing costs, home prices, and earnings. While the measure itself does not establish a causal explanation, its stability over the past year implies that changes in costs and incomes have been moving together rather than in opposite directions.

The next update would be expected to follow Redfin’s regular reporting cadence for the affordability calculation, with subsequent monthly readings showing whether required income continues to track near recent highs or begins to move meaningfully away from the 2025 record.