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3d ago

Income Needed to Afford U.S. Homes Soars, Bay Area Tops $370,000

New data reveals a 70% rise in national income requirements since 2019, with Bay Area and Los Angeles buyers facing the steepest affordability challenges.

A realtor sign welcomes visitors to a home for sale on the 2000 block of Fulton Street in Berkeley, Calif., on Saturday, March 22, 2025. (Jose Carlos Fajardo/Bay Area News Group)
To comfortably afford a typical home, a household needs to earn about $114,000 a year, per Realtor.com. That’s a $47,000, or 70.1%, leap compared to 2019.

Overview

  • Households nationwide now need an annual income of $114,000 to afford a median-priced home, a 70% increase since 2019.
  • In the San Jose metro area, buyers must earn $370,000 annually—54% more than six years ago—to afford a median $1.4 million home.
  • San Francisco metro buyers require $263,000 annually, up 30.5% since 2019, while Los Angeles buyers face an 86% increase to $315,892.
  • Mortgage rates have climbed to an average of 6.81% from 4.2% in 2019, significantly raising monthly payments and income thresholds.
  • Despite rising inventory and price reductions, affordability remains out of reach for many, with wage growth lagging far behind housing costs.