The Lead Off A new housing report finds the income needed to afford a median-priced home in the U.S. has nearly doubled since 2020. Existing home prices have increased about 54% over the same period and now sit at roughly five times the median household income. Rising mortgage rates and high home p rices continue to pressure affordability for potential buyers. UNITED STATES (WOWO) A new report on the U.S. housing market finds that the income required to afford a median-priced home has nearly doubled since 2020, as rising home prices and mortgage rates continue to strain affordability nationwide. The findings come from the Joint Center for Housing Studies of Harvard University’s annual “State of the Nation’s Housing” report, which points to persistent cost pressures and subdued housing activity across the country. Home prices continue to climb According to the report, existing home prices have increased about 54% since 2020 and are now roughly five times the median household income. The study notes that both new and existing home prices are now above $400,000, reflecting ongoing supply constraints and elevated demand relative to available inventory. Higher mortgage rates drive up costs The report highlights the impact of higher borrowing costs on affordability, with mortgage rates now above 6%. As a result, the monthly payment on a median-priced home has increased significantly, reaching about $3,100 in late 2025, up from approximately $1,700 in early 2020. That shift has pushed the estimated income needed to afford a median-priced home to more than $120,000, compared with about $66,000 in 2020. Housing activity remains subdued The report also found that existing home sales remain near their lowest levels in three decades, a trend first seen in 2023. New home sales have remained relatively flat, while new construction has slowed slightly. Single-family housing starts declined by about 7% over the past year. The report attributes the slowdown in part to weaker demand, noting that economic uncertainty and slower employment growth have contributed to reduced household formation and housing mobility. Rental and construction trends Alongside changes in homebuying activity, the report also found shifts in rental trends. Rental retention rates increased while new rental occupancies declined, suggesting fewer new households entering the rental market compared with previous years. Construction activity also dipped modestly, with overall housing starts down about 1% year over year, driven primarily by declines in single-family development. Economic pressures weigh on demand Researchers cited broader economic conditions as a factor influencing housing demand, including slower job growth and declining consumer confidence in recent periods. The report notes that reduced confidence in employment prospects can limit household formation and delay major financial decisions such as purchasing a home. The Takeaway Affordability has declined sharply since 2020 The income required to purchase a median-priced home has nearly doubled due to rising prices and higher mortgage rates. Housing costs continue to outpace income growth Home prices have increased significantly over the past several years, while borrowing costs remain elevated above 6%. Market activity remains restrained Home sales and construction activity continue to run below historic norms as higher costs and economic uncertainty weigh on demand. The post Report: Income Needed to Afford U.S. Home Has Nearly Doubled Since 2020 appeared first on WOWO News/Talk 92.3 FM and 1190 AM. ...read more read less