Wages are up 4.1% year over year, while asking rents are up 2.6% and mortgage-payment growth has slowed to roughly 0% amid declining mortgage rates and a slowdown in home prices.
Wages are up 4.1% year over year, outpacing gains in asking rents and mortgage payments, which are up a respective 2.6% and 0.2%. That’s a reversal from the pandemic moving frenzy, when growth in housing costs—particularly mortgage payments—far outpaced growth in wages.
Please note that asking rent data and wage data cover rolling three-month periods, the most recent of which is the three months ending August 2025. Mortgage payment data cover monthly periods, the most recent of which is July 2025.
Wages have been rising faster than mortgage payments since February 2025, and have been rising faster than rents since September 2022.
“It’s encouraging that wages are growing faster than housing costs because it gives homebuyers and renters a bit more breathing room,” said Chen Zhao, Redfin’s head of economic research. “But today’s relief doesn’t erase yesterday’s struggles. Years of rapid home price growth during and after the pandemic pushed homeownership out of reach for many American families, and we’re still working to close the gap.”
The latest with homebuying costs: Mortgage rates have been steadily declining since May, and yesterday fell to 6.25%—the lowest level in roughly a year. The drop in rates has helped homebuyers gain thousands of dollars in purchasing power. The median monthly mortgage payment was $3,