Redfin: income needed $112,131

Published May 27, 2026 by The Daily Scout

- Redfin said on May 26 the income needed to buy a typical U.S. home fell for a seventh straight month. - Redfin put the affordability threshold at $116,780 in April, while median household income was $87,599 and the median monthly housing payment was $2,827. - Redfin said April 2026 data showed 32.9% of listings were affordable, up from 28.7% a year earlier.

Why it matters

Redfin said on May 26 that the income needed to buy a typical U.S. home fell for the seventh consecutive month in April, extending a gradual affordability improvement from last year’s peak. The real estate brokerage said buyers needed to earn $116,780 a year to afford the median-priced home, down from $119,191 a year earlier. The median monthly housing payment fell to $2,827, the lowest in five months, according to Redfin. Even after that decline, the typical U.S. household still earned far less than what would be needed to buy the typical home. ### Why did the required income come down? April’s average 30-year fixed mortgage rate was 6.33%, down from 6.73% a year earlier, according to Redfin’s analysis. Redfin said lower borrowing costs were one reason the income threshold eased in April. Median household income also rose to $87,599, up 4% from a year earlier, Redfin said. That increase narrowed the gap between what households earn and what they would need to earn to keep housing costs at or below 30% of income, the company’s affordability benchmark. ### How far away is the typical household from affording the typical home? The April affordability threshold of $116,780 was still about $29,000 above the median household income of $87,599, based on Redfin’s figures. Scotsman Guide, which reported the Redfin analysis on May 26, said the gap remains large even as it has narrowed from earlier levels. (redfin.com) Redfin said the income needed to buy a typical home had peaked at about $122,000 in mid-2025. That means the latest figure is lower than last year’s high, but still well above levels seen before mortgage rates rose in 2022. ### What changed for buyers beyond the headline number? (scotsmanguide.com) Redfin said 32.9% of listings in April were affordable to a household earning the U.S. median income, up from 28.7% a year earlier. The company defines an affordable listing as one that would require no more than 30% of a buyer’s income for the monthly housing payment. (scotsmanguide.com) Grishma Bhattarai, a Redfin economist, said in the company’s report that house hunters who had been waiting on the sidelines may want to watch the market more closely because costs have come down, inventory is higher than a year ago, and buyers have more room to negotiate. She also said pending home sales rose in early May, which could lead to more bidding wars and bigger price increases. (scotsmanguide.com) ### Why hasn’t affordability fully recovered? Redfin said that before mortgage rates surged in 2022, more than half of U.S. home listings were affordable to the typical American in nearly every month dating back through 2013. April’s 32.9% share is an improvement from last year, but it remains well below those earlier levels. (scotsmanguide.com) Scotsman Guide reported that Redfin warned affordability could keep improving through 2026, but said that could be interrupted by higher oil prices linked to the Iran war, Federal Reserve rate increases or another economic shock. That assessment was attributed to Redfin’s analysis. (scotsmanguide.com) ### What should readers watch next? Early May pending home sales increased, according to Redfin’s report, giving the next few monthly housing releases added importance for buyers and sellers. Redfin’s next affordability updates will show whether lower mortgage rates, rising incomes and a larger share of affordable listings continue to narrow the gap between the $116,780 threshold and the $87,599 median household income. (scotsmanguide.com)

Key numbers

Redfin said on May 26 the income needed to buy a typical U.S.
Redfin put the affordability threshold at $116,780 in April, while median household income was $87,599 and the median monthly housing payment was $2,827.
Redfin said April 2026 data showed 32.9% of listings were affordable, up from 28.7% a year earlier.
Redfin said on May 26 that the income needed to buy a typical U.S.

What happens next

Redfin said on May 26 that the income needed to buy a typical U.S.
Scotsman Guide, which reported the Redfin analysis on May 26, said the gap remains large even as it has narrowed from earlier levels.
She also said pending home sales rose in early May, which could lead to more bidding wars and bigger price increases.

Sources

Quick answers

What happened in Redfin: income needed $112,131?

Redfin said on May 26 the income needed to buy a typical U.S. home fell for a seventh straight month. Redfin put the affordability threshold at $116,780 in April, while median household income was $87,599 and the median monthly housing payment was $2,827. Redfin said April 2026 data showed 32.9% of listings were affordable, up from 28.7% a year earlier.

Why does Redfin: income needed $112,131 matter?

Redfin said on May 26 that the income needed to buy a typical U.S. home fell for the seventh consecutive month in April, extending a gradual affordability improvement from last year’s peak. The real estate brokerage said buyers needed to earn $116,780 a year to afford the median-priced home, down from $119,191 a year earlier. The median monthly housing payment fell to $2,827, the lowest in five months, according to Redfin. Even after that decline, the typical U.S. household still earned far less than what would be needed to buy the typical home. Why did the required income come down? April’s average 30-year fixed mortgage rate was 6.33%, down from 6.73% a year earlier, according to Redfin’s analysis. Redfin said lower borrowing costs were one reason the income threshold eased in April. Median household income also rose to $87,599, up 4% from a year earlier, Redfin said. That increase narrowed the gap between what households earn and what they would need to earn to keep housing costs at or below 30% of income, the company’s affordability benchmark. How far away is the typical household from affording the typical home? The April affordability threshold of $116,780 was still about $29,000 above the median household income of $87,599, based on Redfin’s figures. Scotsman Guide, which reported the Redfin analysis on May 26, said the gap remains large even as it has narrowed from earlier levels. (redfin.com) Redfin said the income needed to buy a typical home had peaked at about $122,000 in mid-2025. That means the latest figure is lower than last year’s high, but still well above levels seen before mortgage rates rose in 2022. What changed for buyers beyond the headline number? (scotsmanguide.com) Redfin said 32.9% of listings in April were affordable to a household earning the U.S. median income, up from 28.7% a year earlier. The company defines an affordable listing as one that would require no more than 30% of a buyer’s income for the monthly housing payment. (scotsmanguide.com) Grishma Bhattarai, a Redfin economist, said in the company’s report that house hunters who had been waiting on the sidelines may want to watch the market more closely because costs have come down, inventory is higher than a year ago, and buyers have more room to negotiate. She also said pending home sales rose in early May, which could lead to more bidding wars and bigger price increases. (scotsmanguide.com) Why hasn’t affordability fully recovered? Redfin said that before mortgage rates surged in 2022, more than half of U.S. home listings were affordable to the typical American in nearly every month dating back through 2013. April’s 32.9% share is an improvement from last year, but it remains well below those earlier levels. (scotsmanguide.com) Scotsman Guide reported that Redfin warned affordability could keep improving through 2026, but said that could be interrupted by higher oil prices linked to the Iran war, Federal Reserve rate increases or another economic shock. That assessment was attributed to Redfin’s analysis. (scotsmanguide.com) What should readers watch next? Early May pending home sales increased, according to Redfin’s report, giving the next few monthly housing releases added importance for buyers and sellers. Redfin’s next affordability updates will show whether lower mortgage rates, rising incomes and a larger share of affordable listings continue to narrow the gap between the $116,780 threshold and the $87,599 median household income. (scotsmanguide.com)