Americans still need nearly $110,000 to afford a typical home

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1. Texas starter homes are getting more affordable

Redfin reported that the income needed to afford a typical starter home fell 1.5% year over year to $70,693, marking eight straight months of improving affordability — outpacing the broader market, where the income needed to buy a typical home fell just 0.5%.

• Nationwide, 71% of starter-home listings are now affordable for households earning the median income, up from 65% a year earlier.

Austin posted the nation's largest gain, with the income needed to buy a starter home falling 6.1% year over year, followed by Dallas (-5.1%), Fort Worth (-4.9%), Houston (-4.0%), and San Antonio (-3.7%).

2. Zillow cuts 500+ jobs as revenue climbs 18%

Zillow is cutting more than 500 jobs — about 7% of its workforce — as it restructures to reduce costs and operate more efficiently in a sluggish housing market. CEO Jeremy Wacksman said the move is part of a broader organizational overhaul to support long-term growth, not a result of AI replacing jobs.

The layoffs come as Zillow reported second-quarter revenue of $772 million, up 18% year over year and ahead of the broader housing market. Growth was led by mortgages (+75%), rentals (+31%), For Sale (+14%), and residential services (+7%).

Zillow also expanded AI-powered search, Zillow Preferred, and Showcase, while finalizing a new MLS data licensing agreement with Realtracs.

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3. Catch up quick

✨ The best AI tools for real estate. (TheClose)

🚀 Texas is the nation's top destination for Gen Z movers. (U-Haul)

🌄 1,300-acre Texas ranch hits the market for $21.5 Million. (MySA)

💼 AGNT reports record $1.4 Billion in second-quarter 2026 revenue. (Investing)

4. Home prices rose in 80% of metro areas in Q2

Home prices rose in 80% of metro areas in the second quarter of 2026, up from 71% in Q1, according to the NAR. The national median existing single-family home price climbed 1.5% year over year to $434,900, while 20% of markets posted annual declines, down from 27% the previous quarter.

Beaumont-Port Arthur, Texas posted the nation's largest annual price increase at 11.0%. The South also led the nation in sales growth, supported by stronger job creation, with the region's median home price up 1% to $380,000.

The typical monthly mortgage payment for an existing home with a 20% down payment rose to $2,199, while first-time buyers averaged $2,158 — spending 35.9% of their income on housing.

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5. Americans still need nearly $110,000 to afford a typical home

Redfin reports that Americans need an annual income of $109,796 to afford the typical home, down 0.5% from last year's record high of $110,382.

The typical household would still need to spend 38% of its income on a median-priced home, and only 34% of active listings are affordable to the median-income buyer.

San Antonio ranked among the nation's 10 most affordable major metros, with buyers needing $95,256 in annual income to afford a typical home. Other Texas markets include Houston ($99,950), Fort Worth ($106,708), Dallas ($118,898) and Austin ($132,570).

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