A U.S. homebuyer needed an annual income of $116,782 in 2024 to avoid spending more than 30% of earnings on monthly housing payments for a median-priced home, marking a record high and exceeding the national median income by $33,000, according to Redfin.
The median monthly housing payment hit $2,920 in 2024, up 4.3% from the previous year and 86% from 2019. Wage growth, averaging 4% year over year, slightly outpaced rising mortgage payments, contributing to a marginal affordability improvement from 42.2% in 2023 to 41.8% of median income spent on housing costs in 2024.
Texas metros showed the most improvement in affordability. Austin saw the biggest gain, with the percentage of income spent on housing dropping from 42.8% in 2023 to 39.6% in 2024, while San Antonio, Dallas, and Fort Worth also recorded declines. By contrast, Anaheim, CA, led affordability declines with a 75.9% share of median income required for housing payments, up from 71.8% in 2023, followed by Chicago, Miami, and Newark.
California dominated the list of least affordable metros, with Los Angeles requiring 77.6% of median income for housing payments, followed by San Francisco, Anaheim, San Jose, and San Diego. Rust Belt metros like Pittsburgh, Detroit, and Cleveland remained more affordable, with Pittsburgh homebuyers spending just 25.3% of their median income on housing payments.
