70% of US households priced out of buying a $400,000 home

Posted on April 2, 2025   |  

Around 94 million US households, or 70%, cannot afford a $400,000 home.

The median new home price in 2025 is estimated at $460,000, further straining affordability.

The housing affordability pyramid shows most households can only afford homes under $200,000.

Higher home prices limit the number of potential buyers, with luxury homes having the fewest.

At a 6.5% mortgage rate, 52.87 million households earn $61,487 or less and can only afford homes up to $200,000.