US Housing Affordability Improves Modestly in Q1

According to the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI), housing affordability improved modestly in Q1, although conditions remain challenging for many buyers.

The CHI showed that a family earning the national median income of $106,800 needed 32.0% of its income to cover the mortgage payment on a median-priced new home in Q1. Low-income families (earning 50% of the median income) would have needed to spend 65.0% of their earnings to afford the same home.

NAHB noted that the share of income needed to buy a new home has steadily declined over the past year, easing from 36.0% in 2025Q2 to 35.0% in 2025Q3, 34.0% in 2025Q4, and 32.0% in Q1.

The Q1 figures were based on a national median new-home price of $403,200 and a median income of $106,800. The median new-home price edged down from $405,300 in 2025Q4. Meanwhile, the median existing-home price declined more sharply to $404,300 in Q1 from $414,900 in the previous quarter.

The average 30-year mortgage rate also moved lower, slipping from 6.32% in 2025Q4 to 6.20% in Q1.