Americans Need to Earn 70.1% More Today Than Six Years Ago to Afford the Median-priced Home

Americans now need to earn $114,000 to afford the median-priced home Pending home sales fall for the fourth straight month YoY, down 3.2% Active listings rise 30.6% YoY, surpassing April 2020 levels Price reductions hit 18.0% of listings , /PRNewswire/ -- A U.S. household now needs to earn $114,000 annually to afford a median-priced home. That's up 70.1% from $67,000 just six years ago according to the Realtor.com® April Housing Trends Report. While it's clear that buying a home has become significantly more expensive, there are optimistic signs that today's market is slowly shifting in buyers' favor. Inventory is climbing, more sellers are adjusting their prices, and buyers are beginning to gain a bit more leverage in the market. "Even with today's affordability hurdles, meaningful changes in the market could give buyers a better shot at finding a home," said Danielle Hale, Chief Economist at Realtor.com®. "The number of homes for sale is rising in many markets, giving shoppers more choices than they've had in years. Sellers are becoming more flexible on pricing, underscored by the price reductions we're seeing, and while higher mortgage rates are certainly weighing on demand, the silver lining is that the market is starting to rebalance. This could create opportunities for buyers who are prepared." April 2025 Housing Metrics – National (*For metro stats, see Table 1 and Table 2 below) Metric April 2025 Change over Mar. 2025 (MoM) Change over Apr. 2024 (YoY) Change over Apr. 2019 Median listing price $431,250 +1.5 % +0.3 % +36.9 % Active listings 959,251 +7.5 % +30.6 % -15.6 % New listings 471,788 +8.2 % +9.2 % -14.6 % Median days on market 50 -3 days +4 days -4 days Share of active listings with price reductions 18.0 % +0.5 percentage points +2.5 percentage points +3.5 percentage points Median List Price Per Sq.Ft. $233 +1.0 % +1.1 % +54.0 % A $114,000 Homeownership ThresholdSince 2019, the income required to afford the median-priced home has risen $47,000 to $114,00. This figure assumes a 30-year fixed mortgage, a 20% down payment, and no more than 30% of gross monthly income spent on housing. The widening gap is fueled by a combination of rapid home price appreciation and elevated mortgage rates but in some markets, the bar is even higher. Markets with the Highest Required Incomes to Afford a Home Metro Area Required Income to Afford Median Home Required Income vs Apr. 2019 San Jose-Sunnyvale-Santa Clara, CA $370,069 +54.3 % San Francisco-Oakland-Fremont, CA $263,023 +30.5 % Los Angeles-Long Beach-Anaheim, CA $315,892 +86.0 % San Diego-Chula Vista-Carlsbad, CA $258,926 +73.4 % Seattle-Tacoma-Bellevue, WA $206,777 +54.9 % Boston-Cambridge-Newton, MA-NH $232,095 +81.9 % New York-Newark-Jersey City, NY-NJ $208,687 +69.4 % Denver-Aurora-Centennial, CO $158,462 +42.2 % Sacramento-Roseville-Folsom, CA $167,481 +61.7 % Washington-Arlington-Alexandria, DC-VA-MD-WV $164,682 +59.1 % Five California markets showed up in the list above. The state, along with many others represented here, are among the lowest scorers in a recent Realtor.com® analysis, which assigned a grade (A+ through F) to each state based on home affordability. And, it's clear that California has a lot of homework to do – pun intended. January Set the Tone and April Followed: Pending Home Sales Continue to DropFrom October to December last year, pending home sales were relatively stronger on a year-over-year basis. But since January, the momentum has shifted, and in April, pending home sales declined 3.2% compared with a year ago, marking the fourth consecutive month of annual declines. A renewed rise in mortgage rates, now back to levels seen in early 2024, is likely a key factor behind the slowdown. As borrowing costs climbed again in late April, some buyers who had been waiting for more favorable conditions are hitting pause, injecting new uncertainty into the market as it moves into the typically busy summer season. Shifts in Pending Home Sales YoY Month YoY Change in Pending Home Sales April 2025 - 3.2 % March 2025 - 5.3 % February 2025 - 5.4 % January 2025 - 4.1 % December 2024 + 2.4 % November 2024 + 8.2 % October 2024 + 4.3 % Where's the Silver Lining? In light of affordability concerns and more choice for buyers, data suggest that some sellers are meeting buyers in the middle. This month, 18.0% of listings saw price reductions. Additionally, active listings were up 30.6% year-over-year, surpassing April 2020 levels, a notable pandemic-era benchmark. The West (+41.7%) and South (+33.3%) led the way in active listings growth, while certain markets, including San Diego (+70.1%), San Jose (+67.6%), and Washington, D.C. (+69.3%) saw the biggest local gains. Despite this, nationwide inventory still sits 16.3% below 2017–2019 norms, meaning buyers have more options but the market hasn't fully recovered. The full April 2025 monthly housing trends report with additional findings can be found here. *Table 1: April 2025 Top 50 Metros Median Listing Price and Income Metro Area Median Listing Price Median Listing Price YoY Median Listing Price per Sq. Ft. YoY Median Listing Price vs April 2019 Required Income to Afford Median Home Required Income vs April 2019 Atlanta-Sandy Springs-Roswell, Ga. $412,470 -0.8 % -1.3 % 26.9 % $109,034 57.7 % Austin-Round Rock-San Marcos, Texas $525,000 -5.9 % -5.1 % 41.9 % $138,781 76.3 % Baltimore-Columbia-Towson, Md. $392,688 11.5 % 4.0 % 19.0 % $103,805 47.9 % Birmingham, Ala. $299,900 1.5 % 0.8 % 18.8 % $79,277 47.6 % Boston-Cambridge-Newton, Mass.-N.H. $878,000 0.9 % 1.6 % 46.4 % $232,095 81.9 % Buffalo-Cheektowaga, N.Y. $280,000 -1.7 % 1.2 % 31.8 % $74,017 63.8 % Charlotte-Concord-Gastonia, N.C.-S.C. $439,500 4.0 % 1.0 % 25.6 % $116,180 56.1 % Chicago-Naperville-Elgin, Ill.-Ind. $372,450 -4.4 % -0.5 % 9.8 % $98,455 36.4 % Cincinnati, Ohio-Ky.-Ind. $347,725 -7.3 % 2.3 % 23.8 % $91,919 53.8 % Cleveland, Ohio $267,450 7.0 % 8.5 % 34.5 % $70,699 67.1 % Columbus, Ohio $377,450 -4.9 % 1.3 % 24.8 % $99,777 55.1 % Dallas-Fort Worth-Arlington, Texas $430,000 -4.4 % -0.7 % 19.4 % $113,668 48.4 % Denver-Aurora-Centennial, Colo. $599,450 -4.1 % -1.1 % 14.5 % $158,462 42.2 % Detroit-Warren-Dearborn, Mich. $253,575 1.4 % 1.8 % 1.3 % $67,031 25.8 % Grand Rapids-Wyoming-Kentwood, Mich. $397,000 -2.6 % 1.0 % 36.9 % $104,945 70.2 % Hartford-West Hartford-East Hartford, Conn. $453,675 6.8 % 7.0 % 49.7 % $119,927 86.0 % Houston-Pasadena-The Woodlands, Texas $369,900 0.2 % -0.6 % 14.7 % $97,781 42.5 % Indianapolis-Carmel-Greenwood, Ind. $329,211 -3.4 % -0.8 % 18.7 % $87,025 47.4 % Jacksonville, Fla. $399,995 -4.8 % -2.9 % 28.1 % $105,737 59.2 % Kansas City, Mo.-Kan. $399,450 -5.3 % 0.5 % 23.9 % $105,593 53.9 % Las Vegas-Henderson-North Las Vegas, Nev. $475,000 0.0 % 0.9 % 50.1 % $125,564 86.5 % Los Angeles-Long Beach-Anaheim, Calif. $1,195,000 0.3 % 1.4 % 49.7 % $315,892 86.0 % Louisville/Jefferson County, Ky.-Ind. $324,950 -0.6 % 1.9 % 16.2 % $85,899 44.4 % Memphis, Tenn.-Miss.-Ark. $345,495 1.8 % 1.6 % 56.8 % $91,330 94.8 % Miami-Fort Lauderdale-West Palm Beach, Fla. $510,000 -5.6 % -4.2 % 27.8 % $134,816 58.8 % Milwaukee-Waukesha, Wis. $385,000 2.3 % 5.3 % 26.5 % $101,773 57.1 % Minneapolis-St. Paul-Bloomington, Minn.-Wis. $447,400 -0.5 % -0.2 % 20.4 % $118,268 49.6 % Nashville-Davidson-Murfreesboro-Franklin, Tenn. $549,450 -4.0 % -1.4 % 48.5 % $145,244 84.6 % New York-Newark-Jersey City, N.Y.-N.J. $789,450 1.9 % -2.3 % 36.3 % $208,687 69.4 % Oklahoma City, Okla. $322,255 -2.3 % 0.4 % 27.4 % $85,186 58.3 % Orlando-Kissimmee-Sanford, Fla. $425,000 -3.4 % -2.1 % 35.8 % $112,347 68.7 % Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. $375,000 1.4 % 2.7 % 36.4 % $99,129 69.4 % Phoenix-Mesa-Chandler, Ariz. $525,000 -2.2 % -0.9 % 41.4 % $138,781 75.7 % Pittsburgh, Pa. $243,724 0.5 % 1.6 % 33.2 % $64,427 65.6 % Portland-Vancouver-Hillsboro, Ore.-Wash. $614,950 0.0 % -0.5 % 29.2 % $162,559 60.6 % Providence-Warwick, R.I.-Mass. $584,900 11.5 % 6.9 % 55.2 % $154,615 92.8 % Raleigh-Cary, N.C. $451,245 -0.5 % -0.3 % 22.0 % $119,284 51.6 % Richmond, Va. $458,950 0.0 % 2.3 % 37.2 % $121,321 70.5 % Riverside-San Bernardino-Ontario, Calif. $602,500 0.4 % 0.3 % 46.8 % $159,268 82.4 % Sacramento-Roseville-Folsom, Calif. $633,570 -2.5 % -1.5 % 30.1 % $167,481 61.7 % San Antonio-New Braunfels, Texas $339,950 -1.3 % -2.3 % 15.0 % $89,864 42.9 % San Diego-Chula Vista-Carlsbad, Calif. $979,500 -6.7 % -3.0 % 39.5 % $258,926 73.4 % San Francisco-Oakland-Fremont, Calif. $995,000 -3.1 % -5.6 % 5.0 % $263,023 30.5 % San Jose-Sunnyvale-Santa Clara, Calif. $1,399,947 -4.6 % -1.8 % 24.2 % $370,069 54.3 % Seattle-Tacoma-Bellevue, Wash. $782,225 0.9 % 3.4 % 24.7 % $206,777 54.9 % St. Louis, Mo.-Ill. $294,900 0.2 % -0.9 % 31.1 % $77,955 62.9 % Tampa-St. Petersburg-Clearwater, Fla. $410,000 -2.4 % -2.3 % 46.5 % $108,381 82.0 % Tucson, Ariz. $396,133 -3.2 % -0.7 % 32.7 % $104,716 64.9 % Virginia Beach-Chesapeake-Norfolk, Va.-N.C. $409,950 3.8 % 4.8 % 39.7 % $108,368 73.6 % Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va. $622,983 -0.6 % -2.9 % 28.1 % $164,682 59.1 % *Table 2: April 2025 Top 50 Metros Inventory, Days on Market and Price Reduction Metro Area Active Listing Count YoY New Listing Count YoY Median Dayson Market Median Days on Market Y-Y (Days) Price– Reduced Share Price-Reduced Share Y-Y (Percentage Points) Atlanta-Sandy Springs-Roswell, Ga. 45.2 % 8.8 % 46 7 20.8 % 3.1 pp Austin-Round Rock-San Marcos, Texas 24.5 % -0.6 % 44 2 25.9 % 1.2 pp Baltimore-Columbia-Towson, Md. 47.7 % 11.3 % 29 -7 13.4 % 1.4 pp Birmingham, Ala. 18.2 % -1.9 % 50 4 16.1 % 1.4 pp Boston-Cambridge-Newton, Mass.-N.H. 25.7 % 20.1 % 25 1 12.1 % 1.7 pp Buffalo-Cheektowaga, N.Y. 3.2 % 8.4 % 35 1 6.5 % 1.2 pp Charlotte-Concord-Gastonia, N.C.-S.C. 53.0 % 17.9 % 42 5 21.1 % 4.2 pp Chicago-Naperville-Elgin, Ill.-Ind. 11.4 % 1.9 % 33 -1 10.4 % 1.8 pp Cincinnati, Ohio-Ky.-Ind. 24.0 % 9.6 % 34 3 13.2 % 2.5 pp Cleveland, Ohio 21.0 % 3.6 % 38 -2 13.0 % 2.1 pp Columbus, Ohio 37.9 % 7.5 % 31 6 18.8 % 3.6 pp Dallas-Fort Worth-Arlington, Texas 42.8 % 11.1 % 43 3 25.8 % 4.1 pp Denver-Aurora-Centennial, Colo. 65.0 % 24.7 % 36 4 27.2 % 6.1 pp Detroit-Warren-Dearborn, Mich. 16.7 % 10.6 % 37 -3 12.6 % 2.7 pp Grand Rapids-Wyoming-Kentwood, Mich. 15.4 % -3.6 % 33 2 9.1 % -0.3 pp Hartford-West Hartford-East Hartford, Conn. 15.2 % 10.2 % 30 -1 6.7 % 1.1 pp Houston-Pasadena-The Woodlands, Texas 33.9 % 10.7 % 44 1 19.2 % 1.1 pp Indianapolis-Carmel-Greenwood, Ind. 19.7 % 7.5 % 40 2 19.8 % 1.7 pp Jacksonville, Fla. 35.2 % 0.4 % 57 7 27.6 % 2.7 pp Kansas City, Mo.-Kan. 11.8 % 11.1 % 47 0 12.6 % 0.5 pp Las Vegas-Henderson-North Las Vegas, Nev. 60.7 % 18.2 % 44 5 21.4 % 7.5 pp Los Angeles-Long Beach-Anaheim, Calif. 54.6 % 8.3 % 44 5 14.3 % 5.6 pp Louisville/Jefferson County, Ky.-Ind. 22.9 % 10.5 % 39 -1 14.7 % 1.0 pp Memphis, Tenn.-Miss.-Ark. 30.8 % -7.6 % 56 8 20.6 % 0.4 pp Miami-Fort Lauderdale-West Palm Beach, Fla. 40.7 % -1.0 % 72 8 20.1 % 1.2 pp Milwaukee-Waukesha, Wis. 2.3 % 5.2 % 30 -1 8.7 % 1.8 pp Minneapolis-St. Paul-Bloomington, Minn.-Wis. 8.9 % 8.4 % 33 -3 10.6 % 0.0 pp Nashville-Davidson-Murfreesboro-Franklin, Tenn. 34.3 % 4.7 % 47 16 18.8 % -0.5 pp New York-Newark-Jersey City, N.Y.-N.J. 3.2 % 3.3 % 45 -1 7.6 % 0.6 pp Oklahoma City, Okla. 30.0 % -0.9 % 43 2 18.4 % 0.4 pp Orlando-Kissimmee-Sanford, Fla. 44.7 % 5.3 % 62 8 23.4 % 2.8 pp Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. 18.2 % 6.2 % 35 -5 12.6 % 1.2 pp Phoenix-Mesa-Chandler, Ariz. 33.3 % 22.9 % 52 -3 31.3 % 7.6 pp Pittsburgh, Pa. 16.8 % 8.9 % 47 -5 15.7 % 2.4 pp Portland-Vancouver-Hillsboro, Ore.-Wash. 30.6 % 8.2 % 44 5 23.3 % 2.5 pp Providence-Warwick, R.I.-Mass. 33.9 % 10.2 % 29 0 8.2 % 1.5 pp Raleigh-Cary, N.C. 58.2 % 16.2 % 43 5 20.1 % 6.6 pp Richmond, Va. 20.6 % 12.9 % 36 -5 9.9 % 1.5 pp Riverside-San Bernardino-Ontario, Calif. 52.4 % 12.6 % 52 7 18.3 % 4.3 pp Sacramento-Roseville-Folsom, Calif. 49.6 % 13.1 % 38 6 17.9 % 3.3 pp San Antonio-New Braunfels, Texas 20.1 % 9.5 % 58 4 25.6 % 2.4 pp San Diego-Chula Vista-Carlsbad, Calif. 70.1 % 14.4 % 37 4 17.8 % 5.9 pp San Francisco-Oakland-Fremont, Calif. 42.6 % 5.5 % 33 6 13.4 % 4.1 pp San Jose-Sunnyvale-Santa Clara, Calif. 67.6 % 2.4 % 24 3 12.0 % 4.3 pp Seattle-Tacoma-Bellevue, Wash. 50.1 % 7.5 % 30 2 14.4 % 5.6 pp St. Louis, Mo.-Ill. 16.8 % 0.6 % 39 4 13.5 % 1.5 pp Tampa-St. Petersburg-Clearwater, Fla. 32.1 % 6.0 % 58 6 29.3 % 1.8 pp Tucson, Ariz. 56.5 % 14.9 % 51 6 23.5 % 4.6 pp Virginia Beach-Chesapeake-Norfolk, Va.-N.C. 32.1 % 9.4 % 35 3 16.0 % 2.2 pp Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va. 69.3 % 16.1 % 25 -5 13.8 % 3.6 pp MethodologyRealtor.com housing data as of April 2025. Listings include the active inventory of existing single-family homes and condos/townhomes/row homes/co-ops for the given level of geography on Realtor.com; new construction is excluded unless listed via an MLS that provides listing data to Realtor.com. Realtor.com data history goes back to July 2016. The 50 largest U.S. metropolitan areas as defined by the Office of Management and Budget (OMB-202301) and Claritas 2025 estimates of household counts. With the release of its January 2025 housing trends report, Realtor.com® has restated data points for some previous months. As a result of these changes, some of the data released since January 2025 will not be directly comparable with previous data releases (files downloaded before January 2025) and Realtor.com® economics research reports. About Realtor.com®Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. Media contact: Asees Singh, [email protected] SOURCE Realtor.com WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Americans Need to Earn 70.1% More Today Than Six Years Ago to Afford the Median-priced Home

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