After three consecutive quarters of modest enchancment, housing affordability worsened within the second quarter as greater mortgage charges, rising development prices and financial uncertainty weighed available on the market, in accordance with the newest knowledge from the Nationwide Affiliation of Residence Builders (NAHB)/Wells Fargo Price of Housing Index (CHI).
The CHI outcomes from the second quarter of 2026 present {that a} household incomes the nation’s median revenue of $106,800 wanted 34% of its revenue to cowl the mortgage fee on a median-priced new residence. Low-income households, outlined as these incomes solely 50% of median revenue, must spend 67% of their earnings to pay for a similar new residence.
The proportion of a household’s revenue wanted to buy a brand new residence rose from 32% within the first quarter of 2026 to 34% within the second quarter, pushed by a greater than 30-basis level rise within the common mortgage charge and a 2% enhance within the median value of a brand new residence. The low-income CHI additionally rose 65% to 67% over that interval.
The figures are greater for the acquisition of present properties within the U.S. A typical household must pay 36% of their revenue for a median-priced present residence whereas a low-income household would want to pay 71% of their earnings to make the identical mortgage fee.
The U.S. knowledge for the share of earnings wanted to buy a brand new residence within the second quarter relies on a nationwide median new residence value of $410,700 and median revenue of $106,800. The second quarter median new residence value is up 2% from $403,200 within the first quarter. In the meantime, the corresponding value for an present residence rose way more sharply (8%) within the second quarter to $434,900 from $404,300 within the earlier quarter. The common 30-year mortgage charge moved greater from 6.20% within the first quarter to six.51% within the second quarter.
CHI can also be accessible for 175 metropolitan areas, calculating the share of a household’s revenue wanted to make the mortgage fee on an present residence based mostly on the native median residence value and median revenue in these markets.
In eight out of 175 markets within the second quarter, the everyday household is severely cost-burdened (should pay greater than 50% of their revenue on a median-priced present residence). In 77 different markets, such households are cost-burdened (must pay between 31% and 50%). There are 90 markets the place the CHI is 30% of earnings or decrease.
The Prime 5 Severely Price-Burdened Markets
San Jose-Sunnyvale-Santa Clara, Calif., was essentially the most severely cost-burdened market on the CHI, the place 82% of a typical household’s revenue is required to make a mortgage fee on an present residence. This was adopted by:
San Francisco-Oakland-Fremont, Calif. (71%)
City Honolulu, Hawaii (70%)
San Diego-Chula Vista-Carlsbad, Calif. (68%)
Naples-Marco Island, Fla. (60%)
Low-income households must pay between 121% and 164% of their revenue in all 5 of the above markets to cowl a mortgage.
The Prime 5 Least Price-Burdened Markets
In contrast, Decatur, Ailing., was the least cost-burdened market on the CHI, the place typical households wanted to spend simply 16% of their revenue to pay for a mortgage on an present residence. Rounding out the least burdened markets are:
Elmira, N.Y. (17%)
Peoria, Ailing. (18%)
Springfield, Ailing. (20%)
Davenport-Moline-Rock Island, Iowa-Ailing. (20%)
Low-income households in these markets must pay between 31% and 39% of their revenue to cowl the mortgage fee for a median-priced present residence.
Go to nahb.org/chi for tables and particulars.
