Overview

• The income needed to afford the national median-priced home has risen 70% since 2019, reaching $114,000 annually, according to the latest Realtor.com report.
• California buyers now require an annual income of $218,000 to purchase a median-priced home, an 82% increase over five years, with only 17% of households qualifying.
• In the San Jose-Sunnyvale-Santa Clara metro area, the income threshold has hit $408,557, the highest in the nation, reflecting the region's soaring $1.5 million median home price.
• Mortgage rates have climbed to 6.93% as of early 2025, significantly increasing monthly payment burdens compared to 3.89% in late 2019.
• The gap between the income needed to buy versus rent continues to widen, with U.S. buyers requiring 82% more income than renters to afford housing costs.