Home Affordability Gap

The Home Affordability Gap shows the difference between median monthly income and the monthly income required to keep housing costs no higher than 30% of income.

We calculate median monthly income using the Census Bureau's 2023 American Community Survey, adjusted for wage inflation using the Bureau of Labor Statistics monthly wage report. Median home price is from the Zillow Home Value Index. Monthly housing cost includes mortgage principal, interest, taxes, and insurance, assuming a down payment of 20%.
Chart: Lars Peterson / Investopedia