Median Home Affordability Requires Almost Double the Income Since 2020

WHO:

NY Post - The Joint Center for Housing Studies of Harvard University released the report.

Fox Business - The report discusses the U.S. housing sector and its current state.

WHAT:

NY Post - The income required to afford a median-priced home has almost doubled since 2020.

Fox Business - Existing home sales remain near the lowest level in three decades, first reached in 2023.

Fox Business - New construction starts dipped 1% over the last year, driven by a 7% decline in single-family starts.

Fox Business - The median prices for new and existing homes are both over $400,000.

Fox Business - Existing home prices have risen 54% since 2020 and are about 5 times the median income.

Fox Business - The payment on a median-priced home is $3,100 in the fourth quarter of 2025, up from $1,700 in early 2020.

Fox Business - The income needed to afford that payment is more than $120,000, an increase from $66,000 in 2020.

WHERE:

Fox Business - The report pertains to the U.S. housing sector.

WHEN:

Fox Business - The report was released on Wednesday.

Fox Business - The year-over-year increase in the number of renters in the first quarter of 2026 was less than half of what it was a year earlier.

Fox Business - Employment growth slowed from a gain of 1.5 million in 2024 to just 116,000 in 2025.

Fox Business - Consumer confidence reached an all-time low in April 2026.

WHY:

Fox Business - Economic uncertainty has weighed on housing demand.

Fox Business - High costs and the lack of affordable housing options are contributing to weaker demand.

Fox Business - "Without a job, graduates are less likely to form a new household or move to a new region," according to the report.

HOW:

Fox Business - The report noted slower growth in the number of homeowner households and renters compared with a year ago.

(UPDATED June 19, 2026 19:30 UTC)

A new report from the Joint Center for Housing Studies of Harvard University reveals that the income required to afford a median-priced home has nearly doubled since 2020, with existing home prices rising 54 percent over the same period. The report highlights that existing home sales are near their lowest levels in three decades, while new construction starts have dipped by one percent, largely due to a seven percent decline in single-family home starts. Economic uncertainty, high costs, and a lack of affordable housing options are contributing to weaker demand, with consumer confidence hitting an all-time low in April 2026.