National home-price-to-income ratio hits 5.08 in 2026, far above the 2.6 affordability benchmark, as 30-year mortgage rates sit at 6.66%.
The latest data show that the U.S. median home price of $414,900 now requires 5.08 times the median household income of $81,604, according to Census Bureau figures analyzed by Best Interest Financial. That ratio is nearly double the 2.6 threshold that economists consider sustainable. The gap widened again in the first half of 2026 as home-price growth outpaced wage gains in every major metro.
As of July 30, 2026, the 30-year fixed mortgage rate stood at 6.66% and the 15-year fixed at 6.04%, per FRED. The 10-year Treasury yield was 4.7%, producing a 1.96% spread. For a $414,900 home with a 20% down payment, the principal-and-interest payment at 6.66% is approximately $2,120 per month—before taxes, insurance, and HOA fees. At the 2.6 price-to-income benchmark, the same home would cost roughly $212,000, cutting the monthly payment by more than half.
The National Association of REALTORS® Housing Affordability (Fixed Rate) Index measures whether a median-income family can qualify for a median-priced home under current underwriting standards. A reading of 100 indicates exact parity. The April 2026 release showed the index still well below 100, confirming that affordability remains constrained even after modest rate declines earlier in the year.
| Metro Area | Price-to-Income Ratio | Median Home Price | Median Household Income |
|---|---|---|---|
| National | 5.08 | $414,900 | $81,604 |
| Decatur, IL | 2.9 | $165,000 | $56,900 |
| Youngstown, OH | 3.1 | $148,000 | $47,700 |
| San Francisco, CA | 9.4 | $1,250,000 | $133,000 |
Rust Belt metros post the lowest ratios, yet none fall to the 2.6 benchmark. Coastal markets remain the most stretched, with San Francisco requiring more than nine years of local median income.
The NAHB/Wells Fargo Cost of Housing Index (CHI) for Q1 2026 uses a national median income of $106,800 and a median new-home price of $403,200. In Decatur, Illinois, housing costs consumed just 12% of a typical family’s income—the lowest share recorded—while the national average reached 32%. The CHI confirms that even the most affordable markets still require a larger share of income than historical norms.
California’s Housing Affordability Tracker for Q2 2026 shows that median monthly ownership costs reached $4,600, 66% above the cost of renting the same property. The gap has widened steadily since 2020, underscoring how higher mortgage rates and elevated prices compound the affordability challenge.
With the national ratio stuck above 5.0 and rates near 6.7%, qualifying for a median-priced home now demands either dual high incomes, substantial family assistance, or relocation to lower-cost regions. Readers can run live scenarios at HomeRates.ai to see how different down-payment levels and rate assumptions affect monthly payments in their target markets.
Housing affordability in 2026 remains severely constrained: the median U.S. home now costs 5.08 times median income, mortgage rates sit at 6.66%, and no major metro meets the 2.6 price-to-income benchmark. Without meaningful declines in either prices or rates, homeownership will stay out of reach for a growing share of American households.
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