Residents in Nashville need to earn more than $18,000 above the U.S. average income to afford a typical home in 2026.
A new Redfin report reveals that a household needs an annual income of $109,796 to buy the median-priced U.S. home in June 2026 while keeping housing costs below 30% of its income. This figure is just 0.5% lower than last year's peak of $110,382, indicating minimal change in required income over the past year.
Redfin estimates the median U.S. households earned $87,599 in June, up 4% from a year ago, while the median home sale price increased 2.2%. Mortgage rates also eased slightly but remained in the mid-6% range, keeping borrowing costs elevated.
Here's how much Nashville residents need to earn.
What salary is needed to buy a home in Nashville?
The Redfin report measured the 50
most populous areas in the United States and included 46 that had sufficient data.
Of the 50 cities measured, Nashville was the only Tennessee city to make the list.
In Nashville, residents need an income of $128,119 to afford the typical home, a 0.1% drop from 2025. The estimated median income for the city is $96,448, and a home will cost 39.9% of a household's income.
How does Nashville compare to other Southern metros?
Nashville is the third most expensive Southern city on the list. Of the measured Southern cities, which did not include Atlanta, Memphis, or New Orleans, Nashville required the third-highest income to afford the average home.
Here are the other measured Southern cities, from most to least expensive:
- Miami, Florida: Residents need to earn $152,135 to afford a typical home.
- Austin, Texas: Residents need to earn $132,570 to afford a typical home.
- Baltimore, Maryland: Residents need to earn $121,298 to afford a typical home.
- Dallas, Texas: Residents need to earn $118,898 to afford a typical home.
- Charlotte, North Carolina: Residents need to earn $111,862 to afford a typical home.
- Orlando, Florida: Residents need to earn $109,324 to afford a typical home.
- Virginia Beach, Virginia: Residents need to earn $106,920 to afford a typical home.
- Fort Worth, Texas: Residents need to earn $106,708 to afford a typical home.
- Jacksonville, Florida: Residents need to earn $104,004 to afford a typical home.
- Tampa, Florida: Residents need to earn $103,549 to afford a typical home.
- Houston, Texas: Residents need to earn $99,950 to afford a typical home.
- San Antonio, Texas: Residents need to earn $95,256 to afford a typical home.
Other findings from Redfin's report
Redfin defines a home as affordable when a buyer with a 15% down payment spends no more than 30% of their monthly income on mortgage and housing costs.
"The earnings needed to buy a house have stabilized after several years of deterioration, but that doesn't mean homes are affordable to the average American," Redfin Senior Economist Yingqi Xu said in the report.
Xu noted that the market has become "a bit more manageable" for buyers, transitioning to a "buyer's market" in many areas, which offers more options and stronger negotiating power. However, she said many first-time buyers are still hesitant because incomes don't match the affordability needed for financial comfort.
Redfin economists noted that affordability might improve slightly by year's end, but it could worsen if interest rates rise, oil prices increase, or inflation accelerates.
A recent report found that buyers are spending less of their income on housing than last year. The typical homebuyer now spends 37.6% of their income on a median-priced home, down from 39.3%. This decline coincides with an increase in median household income from $84,257 to $87,599, while the income needed to afford a home stayed mostly the same.
In June, 34.2% of homes for sale were affordable for households earning the national median income, up from 30.5% a year earlier. However, Redfin noted that affordability remains below pre-2022 levels, when over half of listings were typically accessible to median-income households.
Jordan Green covers trending news for The Commercial Appeal and Tennessee. She can be reached at jordan.green@commercialappeal.com
This article originally appeared on Nashville Tennessean: Buying a home in Nashville costs $18K more than the national average
