A new report from the Joint Center for Housing Studies of Harvard University finds that the income required to afford a median-priced home in the US has nearly doubled since 2020. This is due to rising home prices and higher mortgage rates, which have strained affordability nationwide.

Rising Home Prices

Existing home prices have increased by about 54% since 2020 and are now roughly five times the median household income. Both new and existing home prices are above $400,000, reflecting ongoing supply constraints and elevated demand relative to available inventory.

Higher mortgage rates have also driven up costs, with mortgage rates now above 6%. As a result, the monthly payment on a median-priced home has increased significantly, reaching about $3,100 in late 2025, up from approximately $1,700 in early 2020. This shift has pushed the estimated income needed to afford a median-priced home to more than $120,000, compared with about $66,000 in 2020.

Housing Activity Remains Subdued

Existing home sales remain near their lowest levels in three decades, a trend first seen in 2023. New home sales have remained relatively flat, while new construction has slowed slightly. Single-family housing starts declined by about 7% over the past year.

The report attributes the slowdown in part to weaker demand, noting that economic uncertainty and slower employment growth have contributed to reduced household formation and housing mobility.

Original reporting: WOWO News/Talk (Fort Wayne) — read the source article.