Redfin Report: Homebuyers Must Earn Nearly $80,000 to Afford the Typical U.S. Starter Home, Just Shy of the All-Time High

Homebuyers in the U.S. need to earn nearly $80,000 to afford a typical starter home, with monthly payments averaging $1,981, a 4.4% increase from last year. In many major metros, families earning the median income cannot afford these homes, especially in California, where incomes must be double the local median. While starter home listings rose nearly 20% year-over-year, affordability remains a challenge, particularly for lower-income households. Mortgage rates have slightly decreased, providing some relief to buyers.