The Brief

Only 28% of U.S. homes are affordable for median-income buyers, down sharply from previous years due to higher mortgage rates.

Despite a 15.7% wage increase since 2019, borrowing costs have risen faster, cutting the affordable home price to $298K.

Buying power dropped most in Milwaukee and Houston, while only 6 of the 50 largest metros—including Cleveland—saw any gains.

In a market largely defined by higher interest rates and affordability challenges, a new report reveals how far buyers’ budgets are being stretched.

Researchers at Realtor.com analyzed 2019 income data, the latest census income estimates, and housing payments based on a 4% interest rate for 2019 and a 6.74% mortgage rate for 2025.

Only 28% of homes now affordable for American buyer

By the numbers:

The

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