US Housing Affordability Improves Marginally in Q4

According to the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI), housing affordability for both new and existing homes improved slightly in 2025Q4.

The index showed that a family earning the national median income of $104,200 needed to spend 34% of its income to cover the mortgage payment on a median-priced new home. Low-income families—defined as those earning 50% of the median income—would need to spend 67% of their earnings to afford the same new home.

NAHB noted that although new and existing homes remain largely unaffordable, affordability has improved modestly in the last three quarters of 2025. The share of income needed to purchase a new home declined from 36% in Q2 to 35% in Q3 and 34% in Q4.

A similar trend was recorded for existing homes. A typical family needed to spend 37% of its income to purchase a median-priced existing home in Q2, 36% in Q3, and 34% in Q4. A low-income family would need to spend 69% of its income to afford the same mortgage payment on a median-priced existing home in Q4.