The typical US home now costs a record $440,660 — and many Americans can’t keep up. Here’s how some buyers are adapting

Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.

The dream of homeownership continues to drift further out of reach for many Americans.

The median price of an existing U.S. home reached a record $440,660 in June, according to new data from the National Association of Realtors (1) (NAR), marking the 36th consecutive month of year-over-year price growth.

Must Read

• JPMorgan still sees gold hitting $5,000/oz by Q4 — and savvy investors are protecting their wealth with a tax-advantaged Gold IRA. Learn more with a free guide from Priority Gold

The latest milestone comes as a bipartisan housing affordability bill remains in political limbo, delaying reforms designed to boost housing supply and improve affordability.

While the annual increase was a relatively modest 1.8%, economists say home prices continue to outpace wage growth, keeping pressure on prospective buyers.

“Housing affordability remains low under slowing wage growth and stronger home price growth,” Ershang Liang, an economist with PNC Economics Research, said in a recent report cited by CBS News (2).

Affordability pressures aren’t easing

The latest figures highlight how difficult the housing market remains for first-time buyers.

NAR reported the median price for an existing single-family home climbed to $446,400 in June, while condominiums and co-ops reached $380,000.

Prices also varied significantly across the country:

• Northeast: $564,800

• Midwest: $346,600

• South: $377,700

• West: $633,600

Although mortgage rates have eased somewhat (3) from their 2023 highs, elevated borrowing costs combined with years of home-price appreciation continue to stretch household budgets.

According to LendingTree (4), fewer than four in 10 households that don’t already own a home can afford a typical starter home priced around $200,000. Separate research from Redfin (5) found households now need an annual income of roughly $117,000 to comfortably afford the average home, based on April 2026 data.

“Without a doubt, affordability is a major challenge for people who want to become homeowners, which is the reason why we need more supply,” Lawrence Yun, NAR’s chief economist, told the Associated Press (6).

The housing market has remained sluggish since mortgage rates began climbing in 2022. Existing-home sales have hovered near multi-decade lows, even as NAR reported (7) modest year-over-year gains in recent months.

Read More: Millionaires under 43 hold only 25% of their wealth in stocks. Here’s where their money is actually going

Housing reform remains on hold

At the time the housing data was released, lawmakers were awaiting the fate of the 21st Century ROAD to Housing Act (8), which became law without President Donald Trump’s signature (9) after the 10-day constitutional review period expired.

The bipartisan legislation would attempt to address several factors contributing to high housing costs by reducing regulatory barriers to construction, encouraging zoning reforms, expanding homebuilding and limiting institutional investors’ ability to purchase single-family homes.

Today’s housing market doesn’t leave consumers with many easy answers.

For prospective buyers priced out of homeownership, however, purchasing a primary residence isn’t the only way to gain exposure to real estate or potentially benefit from rising property values.

Invest in residential real estate without buying a home

Owning a primary residence has traditionally been the default vehicle for building wealth, but with current barriers to entry at an all-time high, it’s not the only path.

Mogul is an investment platform that can get you started. It’s an option that offers fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.

Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10% to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.

Getting started is quick and easy. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.

If you’re looking to explore even more ways to enter the real estate market, Arrived is another platform worth considering. It offers a similar path to real estate exposure through fractional ownership, allowing you to get started with a lower entry point.

Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord.

To get started, you can browse through their selection of vetted properties, each picked for its potential appreciation and income generation and you can start investing with as little as $100.

While these fractional investment platforms offer an accessible entry point into real estate, some people simply dream of having their own home. If you’re still set on buying a property, navigating the market requires careful planning and the right tools.

Compare mortgage rates before you buy

Home prices aren’t the only factor affecting affordability — your mortgage rate can have a major impact on your monthly payment.

Freddie Mac recommends shopping around and obtaining quotes from three to five lenders to secure the best possible mortgage rate. Even a small rate reduction can translate into significant savings over the life of a loan.

To make this process easier, the Mortgage Research Center (MRC) can help you quickly compare rates and estimated monthly payments from multiple vetted lenders.

By entering basic details, such as your zip code, property type, price range and annual income, you can view mortgage offers tailored to your needs and shop with confidence.

Beyond navigating the market for a new purchase, current homeowners have their own strategic advantage. If you already own property, the recent surge in home values may have unlocked significant potential in your existing residence.

Put your home equity to work

If your home’s value has climbed substantially, you may have more equity than you realize.

One way to easily tap into that liquidity is through a Home Equity Line of Credit (HELOC). It’s a revolving line of credit that leverages the equity in your home as collateral, so that you can borrow and repay funds as needed.

AmeriSave offers a flexible HELOC that lets homeowners borrow against their equity as needed during a draw period, making it useful for renovations or debt consolidation. The application is mostly online and available in most states.

It’s a good fit for borrowers who want convenience and flexibility rather than a large lump-sum loan up-front.

You can draw funds only when you need them, so it’s useful for ongoing or unpredictable costs. Interest is charged only on what you use and you repay the balance over time. It’s essentially a flexible credit line secured by your home, delivered through a mostly online application process.

You May Also Like

Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.

Article Sources

We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.

National Association of Realtors (1); CBS News (2); The Wall Street Journal (3); LendingTree (4); Redfin (5); Associated Press (6); Business Wire (7); Congress.gov (8); National Low Income Housing Coalition (9)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.