Jeff Vasishta
4 min read
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As if you needed proof of the housing crisis facing many Americans, a new report by Realtor.com reveals that the income required to buy a home has soared by a mighty 70% since spring 2019.
According to the Realtor.com April 2025 Housing Market Trends Report, the household income needed to buy a home has increased by $47,000. This means that if a buyer wished to purchase a home at April’s national median list price of $431,250, they would need to earn an annual income of $114,000, buy with a 30-year mortgage, and make a 20% down payment, according to Realtor.com.
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The numbers factor in the homeowner not spending more than 30% of their gross income on their housing costs, which would account for their mortgage payment, taxes, and insurance. It effectively puts many middle-class workers out of the home-buying pool because an owner would need to make around $9,500 a month before taxes to cover their housing expenses.
According to the U.S. Census Bureau, a typical American household earned just over $80,600 per year, in 2023, over 40% less than the figure needed to buy a home today.
“While the income needed to purchase a home has leveled off nationally over the past year, it remains significantly higher than before the [COVID-19] pandemic, underscoring the ongoing challenge of affordability even as market conditions gradually rebalance,” Realtor.com Chief Economist Danielle Hale said.
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According to Realtor.com data, the income needed to buy a home varies dramatically across the nation and spiked in some cities more than others since 2019.
Memphis, Tennessee, has seen the greatest required salary spike of 94.8%. It means a potential buyer of an averagely priced home of $345,495 would need to make $91,300 a year.
Providence, Rhode Island, was next, requiring a salary of $154,615 to buy a home costing $584,900 — a 93% increase,
In third place was Las Vegas, which required an income of $125,654 to buy a home costing $475,000 — an 86.5% increase.
