Families need a household income of more than $200,000 in order to buy a detached single-family home in the D.C. region, according to new data from listing service Bright MLS.
Lisa Sturtevant, the group鈥檚 chief economist, said the median price of a single-family home in the D.C. region is about $800,000. That means family income of about $230,000 is necessary to make that type of house affordable.
In parts of Northern Virginia, homes are even more expensive. Single-family houses in places such as Arlington, and parts of Alexandria and McLean, could cost over $1 million, which requires a family income of over $300,000.
The market, Sturtevant said, is becoming increasingly challenging for first-time buyers. This week, the National Association of Realtors said the median age of first-time homebuyers reached 40.
Buyers who made purchases during the pandemic capitalized on low mortgage rates and are benefiting from equity growing in their house, Sturtevant said.
But, for others, 鈥渋nventory is increasing, but price points are still so high, and it鈥檚 really hard for many of those buyers to get in,鈥� Sturtevant said. 鈥淪o they鈥檙e waiting, they鈥檙e renting longer and they鈥檙e waiting longer, and that鈥檚 why we鈥檙e seeing the average age of a first-time homebuyer on the rise.鈥�
The median price of homes sold in the D.C. region last month was $630,000, , up from $600,000 in October 2024. That figure includes condos, townhomes and single-family homes.
A household income of about $200,000 is required to afford a D.C.-area home that costs more than $600,000, Sturtevant said, considering factors such as a mortgage and home insurance.
Meanwhile, Sturtevant called the Northern Virginia housing market resilient, given the layoffs at federal agencies and the government shutdown.
In Fairfax County last month, the median sales price for all homes was $745,000. In Loudoun County, it was $741,000.
In Montgomery County, Maryland, it was $625,000, and in Prince George鈥檚 County, it was over $452,000. In D.C., it was $675,000.
In Northern Virginia, Sturtevant said the high-end housing market has been robust.
鈥淗omes priced at $1.5 to $2.5 million and higher, we鈥檙e seeing a much stronger market in that segment than we are in the entry-level market and the more moderately-priced market,鈥� Sturtevant said. 鈥淭hat says to me that folks at the higher income levels are actually just feeling a little bit more financially secure right now.鈥�
If buyers have flexibility in the type of home they want to buy, Sturtevant said there are more condos on the market in Northern Virginia and D.C. than in 2019.
Sellers are also expecting a negotiation.
鈥淚f you鈥檙e seeing a home that鈥檚 outside your price range, there are more and more sellers dropping their asking prices and negotiating,鈥� Sturtevant said.
There are weaker housing market conditions in Montgomery and Prince George鈥檚 County, Sturtevant said, and in D.C., there鈥檚 been 鈥渁 real strong pullback in showing activity, in the number of people putting offers on homes.鈥�
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