U.S. home prices reached an all-time high in June, with the median price of existing homes climbing to $440,660, according to data from the National Association of Realtors (NAR). This 1.8% increase over the previous year marks 36 consecutive months of rising home prices, further straining affordability for first-time buyers as a bipartisan housing bill remains stalled in Washington, D.C.
Regional Price Disparities and Market Trends
The cost of homeownership varies significantly across the country, according to the NAR’s latest housing snapshot. The West remains the most expensive region, with a median single-family home price of $633,600, while the Midwest offers the most accessible entry point at $346,600. Other regional median prices include $564,800 in the Northeast and $377,700 in the South.
Nationally, the median price for existing single-family homes sits at $446,400, while condominiums and co-ops average $380,000. These figures illustrate the persistent nature of price growth that has characterized the market since the pandemic, when the Federal Reserve slashed interest rates to support the economy.
Fewer than 4 in 10 non-homeowner households can afford a typical starter home priced around $200,000, according to data from LendingTree.
The Affordability Crisis and Wage Growth
The current market environment presents a significant challenge for prospective buyers. According to PNC Economics Research economist Ershang Liang, housing affordability remains low due to a combination of slowing wage growth and stronger home price growth. Redfin reports that households now require an annual income of approximately $117,000 to afford the average home.
Lawrence Yun, chief economist at the NAR, noted to the Associated Press that the lack of supply is a primary driver of the current crunch. Sales of previously occupied homes have remained largely stagnant, hovering at 30-year lows since mortgage rates began rising from their pandemic-era lows in 2022. Through the first half of 2026, seasonally adjusted sales of existing properties increased only 0.7% compared to the same period the previous year.
Political Standoff Over the 21st Century ROAD to Housing Act
Legislative efforts to address these costs are currently in limbo. Congress passed the 21st Century ROAD to Housing Act last month with bipartisan support, aiming to remove regulatory barriers to construction, limit institutional purchasing of single-family homes, and reform zoning laws to boost housing supply.
Despite passing both chambers, the bill has not been enacted. President Trump canceled a scheduled signing ceremony in late June, stating he would withhold his signature until lawmakers pass the SAVE America Act. Under the Constitution, if the president does not sign or veto a bill within 10 days—excluding Sundays—while Congress is in session, the legislation automatically becomes law.
When evaluating affordability, look beyond the median price. Factor in your local property tax rates and current mortgage interest rates, as these significantly impact the total monthly cost of ownership beyond the purchase price.
Frequently Asked Questions
Why are U.S. home prices still rising?
Home prices have risen for 36 straight months, according to the NAR. This trend accelerated during the pandemic as interest rates dropped.
What is the 21st Century ROAD to Housing Act?
It is a bipartisan bill designed to lower housing costs by streamlining construction regulations, encouraging zoning reform, and restricting institutional investors from buying single-family homes.
What income is required to buy a home today?
Real estate firm Redfin reports that an average household needs an annual income of roughly $117,000 to afford a typical home in the current market.
What happens if the president does not sign the housing bill?
If Congress is in session, a bill presented to the president becomes law automatically after 10 days (excluding Sundays) if he chooses neither to sign nor veto it.
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