In a market defined by higher interest rates and persistent affordability challenges, a new report from Realtor.com ® reveals just how far buyers’ budgets are being stretched. According to the August 2025 Buying Power Report, only 28.0% of homes on the market were priced within reach of the typical household as the maximum affordable home price for a median-income household in the U.S. has fallen to $298,000. The figure is down nearly $30,000 from $325,000, which is where it sat in 2019. The news is even worse for Metro Phoenix residents because only 13.7% of Metro Phoenix homes are affordable for the typical household.

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“Even as incomes grow, higher interest rates have eroded the real-world purchasing p

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