The Brief

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 data, published in the company’s 2025 Buyer Power Report, found that only 28% of homes on the market were priced within reach of the typical household.

They found that the maximum affordable home price for a median-income household in the U.S. has fallen to $298,000 – down nearly $30,000 from $325,000 in 2019.

While wages have risen 15.7% in the same time frame, the data

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