How much income do you need to own a house these days in America?

The American dream has been privatized and to enter it would cost a six-figure subscription service. By the fourth quarter of 2025, affording a home in the U.S. required an income of $106,730 with a 20% down payment and that number rises to more than $122,000 if one is willing to only put 10% down payment. This calculation comes off from an assumption that the median national home is valued at $414,900, followed by mortgage rates currently averaging 6.23%.

In San Jose, buyers now need a staggering salary of $458,503 with 20% down payment, while Pittsburgh moves the goalposts closer for buyers at $64,106. For those looking to settle down in New York City, they would need over $200,000 just to stay within standard lending ratios.

Equally across different states the divide is just as palpable as per the analysis by MoneyLion for instance in Hawaii for a single buyer even with a 10% down payment, they would need roughly $221,443 on an annual basis as opposed to the $39,000  required in West Virginia. 

A big paycheck is no longer a guarantee for a mortgage, as lenders are scrutinizing income stability over someone’s salary size as per an analysis from Truework on 300,000 verified applicants. In addition, the number of Americans experiencing downward income instability rose from 50% in early 2022 and by mid-2025 it reached 62%, while the severity of income swings nearly tripled.

To make things worse that shift is converging with an already brutal affordability crunch, households now need even with a 10%  down payment about $120,796 in a year just to be able to afford a typical home within the U.S. and that’s perhaps too tall of an ask when it's roughly 48% above the median US household income. And for two consecutive years, nine of the 10 least affordable metros for homebuyers are located in California, while there’s still hope for those who are willing to settle for cheaper markets toward the Midwest and South. 

All in all, the result is a situation where America’s housing market is bifurcated into two economies: one for those with stable high income and another for those who are just trying to catch up.