Mortgages Now Take 36% of a Typical Family’s Income. Here’s How Financial Experts Say To Prepare

New findings from the latest NAHB/Wells Fargo Cost of Housing Index, a quarterly analysis of housing costs in the United States, paint the real picture of affordability facing homeowners and prospective buyers today. A family earning the nation's median income of $106,800 now needs 36% of that income to cover the mortgage payment on a median-priced existing home ($434,900) and 34% for a new home ($410,700), up from 32% for both in the first quarter of 2026. The CHI is calculated as the ratio of mortgage payment over median family income. The mortgage payment is calculated by taking the median home price (assuming a 10% down payment) and adding taxes, homeowners insurance, and private mortgage insurance (PMI).As housing affordability worsens, this new information has many hopeful buyers wondering if they’ll be able to buy a home—now or ever. Financial experts weigh inThe 28/36 rule and 30% income rule are two popular budget guidelines for homebuyers.The first says to spend no more than 28% of your gross monthly income on housing and no more than 36% on total debt. The second caps housing at no more than 30%.But given this new data, are those guidelines still realistic today? Financi...