U.S. homebuyers now need an annual income of $115,454 to afford the median-priced home, a 1.4% decrease year over year, marking the first decline since June 2020. This drop is attributed to a decrease in mortgage rates, which fell to 6.09%. Despite improved affordability, the typical household income is only $83,853, leaving many unable to afford a home. Texas metros like Austin and San Antonio saw significant drops in income needed, while East Coast cities like Philadelphia experienced increases due to rising home prices.