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Over 75% of U.S. Listings Unaffordable as Australia’s First-Home Bar Rises to $180,000

A severe lack of housing supply is the primary force pushing typical buyers out of the market.

Overview

  • Bankrate’s new analysis finds more than three-quarters of U.S. homes for sale are unaffordable to the typical household.
  • To buy a median-priced U.S. home, households need about $113,000 in income versus roughly $84,000 earned, leaving a gap of about $30,000 as the typical home costs around $435,000.
  • In high-cost metros such as New York, San Francisco and Seattle, households must earn roughly $200,000 or more to afford a median-priced home.
  • Zillow estimates the U.S. is short by about 4.7 million housing units, reinforcing economists’ calls for supply-focused reforms.
  • KPMG reports Australia’s first-home affordability has plunged from 30% of listings in 2019–20 to 12% in 2024–25, with about $180,000 needed to service a typical first loan and only a one-in-20 chance in Sydney at that income.