Income growth remains one of the biggest drivers of housing affordability. While the broader economy has stayed resilient, income gains are not happening evenly across the country. Where earnings are rising faster — and where they’re not — can influence both buying power and future housing demand.
For buyers in 2026, understanding these trends can help set realistic expectations about affordability and market conditions.
The National Picture: Encouraging, but Not Equal
Median household income nationwide rose nearly 4% in 2024, reaching approximately $84,000. That pace is slower than the sharp gains immediately following the pandemic but closer to historical norms. Since 2019, incomes have increased more than 20%, helping many households absorb higher home prices and mortgage payments.
However, once inflation is factored in, the story becomes more nuanced. After adjusting for rising costs, real incomes grew only slightly last year and have changed little overall since 2019. This disconnect helps explain why many families still feel financially stretched even though economic indicators appear strong on paper.
For buyers, rising nominal incomes offer some support — but not always enough to fully offset higher housing costs.
Local Markets Tell a Different Story
National averages only go so far. When looking at individual metro areas, income trends vary significantly.
While incomes rose in all major markets last year, only a handful outpaced the national average. Among the strongest short-term performers were Las Vegas, Orlando, Richmond, Naples, and Stockton. These markets are not necessarily the highest-income areas overall, but recent income momentum may provide local buyers with additional flexibility in navigating today’s housing costs.
Meanwhile, higher-priced coastal metros such as San Jose, Seattle, and New York posted some of the largest dollar increases in income, even if their percentage growth rates were more moderate.
The Long-Term Leaders: The West and the Sun Belt
Looking at income growth since 2019 — and over the past decade — a clear pattern emerges. Fast-growing regions across the West and the broader Sun Belt have seen some of the strongest and most consistent gains.
Cities such as Myrtle Beach, Miami, Lakeland, Tampa, Stockton, and Provo stand out for long-term income momentum, often driven by migration and expanding local economies.
In contrast, several traditionally high-earning metros — including San Francisco, Washington DC, and New York — have experienced more modest growth, as high costs and outmigration influenced overall trends.
Over a ten-year period, Western markets in particular dominate the list of top income growers, reinforcing their long-term economic strength and continued appeal to buyers.
What This Means for Buyers in 2026
Income growth plays a central role in housing affordability. In regions where incomes are rising steadily, housing demand may remain strong even in a higher-rate environment, helping support pricing and market stability. In markets with slower income growth, housing activity may be more sensitive to changes in mortgage rates or broader economic conditions.
For buyers, rising incomes provide at least some cushion against affordability pressures. However, the widening differences between markets mean that local economic trends matter more than ever. Paying attention to job growth and income momentum in your specific area can offer valuable insight into where the market may be headed — and whether conditions are likely to strengthen or soften over time.
The insights in this article were taken from more in-depth research reports published in Zonda’s National Outlook subscription.
