While the income needed to buy a new home is still about $22,000 more than the typical household earns, that gap has been shrinking. According to an analysis released Wednesday by Redfin, a year ago the gap was $26,000, and it was $29,000 two years ago. Get these articles in your inbox Sign up for our daily newsletter Newsletter Signup - Single Field Mobile Email * Sign up If you are human, leave this field blank. Redfin considers a home affordable if the buyer spends no more than 30% of household income on monthly housing payments, assuming a 15% downpayment. There is more reason for optimism when it comes to starter homes, however.