US Housing Hits Record Unaffordability, Per CBS Report
Per CBS, US home affordability is at a historic low. Median existing home prices hit $440,660, with buyers needing $117K+ in income and over 75% of listings out of reach.
The average US home has never been more unaffordable to the average American, according to new reporting from CBS. Prices keep grinding higher, wages are lagging, and the gap between what buyers earn and what homes cost has widened to a historic extreme.
The numbers behind the record
The median price of existing homes in June was $440,660, up 1.8% from $432,700 a year ago, according to new data from the National Association of Realtors. Home prices have risen for 36 straight months.
Households need an annual income of roughly $117,000 to afford the average home, real estate firm Redfin has found. The Federal Reserve Bank of Atlanta pegs the required income even higher, at $121,400, to keep monthly costs below 30% of annual income.
Supply is the core problem
The U.S. faces a housing deficit of about 4.7 million, driven by more than a decade of underbuilding after the Great Recession. Goldman Sachs estimates meeting today's demand for housing would require building as many as 4 million additional homes beyond current construction levels.
Average home prices are up roughly 50% across the country since 2020, and wages haven't been able to keep up. Wages have grown 22% since the start of 2021, according to Bankrate's analysis of Bureau of Labor Statistics data.
Do you want to see how to make more plays? Do you want to find gains yourself?
Unusual Whales helps you find market opportunities through our market tide, historical options flow, GEX, and much, much more.
Create a free account here to start conquering the market with Unusual Whales.
Rates are the other half of the equation
Even with a slight cooling this year, homes are selling for about 25% above their 2019 levels, while mortgage rates have more than doubled since their pandemic lows.
Aspiring homebuyers could see some relief in 2026. Mortgage rates are expected to dip to an average of 6.3% next year, a slight drop from the 6.6% average in 2025, according to Realtor.com. That is still well above the sub-3% levels that fueled the 2020-2022 buying frenzy.
Renting is winning the math
On average, renting is cheaper than paying a mortgage in all 50 of the largest U.S. metros in 2025, with the cost difference between the two growing in 38 metros since last year, according to a 2025 Bankrate analysis.
More than 75% of homes across the country are unaffordable for the typical household, Bankrate said in a report. The personal finance firm defines a home as affordable if the annual housing costs do not exceed 30% of a household's income.
Options market and stocks to watch
Watch $DHI (D.R. Horton) and $LEN (Lennar) for how homebuilders navigate weak affordability, incentive spend, and any rate relief into 2026.
Watch $RKT (Rocket Companies) and mortgage-linked names for origination volumes tied to any move lower in the 30-year rate.
Watch $Z (Zillow) and $RDFN (Redfin) for signals on transaction volumes if buyer demand stays frozen at these price points.
Watch $HD (Home Depot) for read-through on renovation spend as owners stay put rather than trade up into higher mortgage rates. For more coverage, see other news.
Want more market intelligence? Create your free Unusual Whales account for options flow, market tide, GEX, and the full toolkit.