U.S. home purchase income rose 79% in five years

The income needed to buy a typical U.S. home has risen by 79% over the past five years, reaching $92,538 in January 2025. This increase contrasts sharply with average weekly earnings, which have only grown by 25% during the same period. Home values have surged due to high demand during the pandemic, with the typical home now valued at $356,776, a 44% increase since January 2019. Rising mortgage rates have further strained affordability, making it difficult for many potential buyers. As a result, existing home sales have slowed since 2022. Many homeowners are reluctant to sell, as they cannot afford higher mortgage payments or prefer to keep their lower rates.