Affordability Gap Persists

U.S. households earning $75,000 a year can only afford 21.2% of home listings – up slightly from 20.8% a year prior and representing the biggest gain of any income group – demonstrating that the nation's housing affordability gap persists. Recent reports analyze the shortage of affordable homes across different income levels in the current U.S. housing market. It provides a real-time, income-specific snapshot of housing affordability, examining what home buyers at various income levels can afford based on standard lending criteria.

For-sale housing inventory increased nearly 20% nationwide in March 2025 from one year earlier, and while this gain marks progress, it remains far from pre-pandemic conditions.

While households earning $75,000 a year experienced a slight improvement in accessibility to home listings between March 2025 (21.2%) and March 2024 (20.8%), the largest gain of any income group, they have less than half of the access to affordable homes than they had before the pandemic, when nearly 49% of listings were accessible. In a balanced housing market – where listings are aligned with what households at various income levels can afford – these home buyers would need access to 48.1% of listings. To reach that threshold, the market needs nearly 416,000 more listings priced at or below $255,000. 

Households that earn $100,000 annually are in a similar situation. They can currently afford 37.1% of home listings, up slightly from 36.9% in March 2024. That is far below the 64.7% they could afford in 2019 and well below the 60.7% target for market balance. This group faces a shortage of nearly 364,000 home listings priced under $340,000.

A household earning $50,000 annually can only afford 8.7% of home listings today, down from 9.4% one year ago. These low-income households represent one-in-three households, and in a balanced housing market, they should be able to afford to buy one-in-three listings. For balance, about 367,000 listings at a maximum price of $170,000 are vital.

Meanwhile, higher-income households have near-total access to the housing market. Home buyers earning $250,000 or more can afford at least 80% of home listings. 

The bottom line is that it's more difficult for some people to buy a home in 2025 than it has been for many years. For those who are interested, I have access to certain programs that can make the home buying process more affordable. Just this week alone, I spoke with several clients regarding programs that would either make their home more affordable when it's listed for sale (Greater Circle Living), or programs for immigrants with limited down payment funds who are looking to buy their first home in the United States (OHFA). There are many programs available and I can assist in connecting you with them. This will benefit buyers and sellers alike, as these make programs make listings more accessible to buyers and increases marketability for sellers. Call me if you would like to discuss!