Redfin Reports Affordability For U.S. Starter Homes Improves Slightly Faster Than Overall Market

Redfin Reports Affordability For U.S. Starter Homes Improves Slightly Faster Than Overall Market

* The income needed to afford a typical U.S. starter home is down 1.5% from a year ago, marking eight straight months of declines as price growth cools. * The median U.S. household now earns about $17,000 more than what's needed to afford a starter home, up from $12,500 a year ago. * Austin leads the nation in improving starter-home affordability, while Detroit, Philadelphia and Cleveland are becoming less affordable—though typical local households can still generally afford starter homes. SEATTLE, Aug. 5, 2026 /PRNewswire/ -- Americans need to earn $70,693 to afford the typical U.S. starter home, down 1.5% from a year ago, according to a new report from Redfin , the real estate brokerage powered by Rocket. The income needed to afford a starter home—those in the 5th to 35th percentile for sale prices—has been falling since November 2025.