U.S. Housing Affordability: Moderate-Income Buyers Still Struggle Despite Slight Gains

by Gemma Peterson

Homebuyers earning around $75,000 a year can afford just 21% of homes on the market – less than half of what was accessible pre-pandemic.

Despite a rise in housing inventory and some progress in affordability, most moderate- and low-income households still face major challenges in today’s real estate market. According to the 2025 Housing Affordability & Supply Report from the National Association of Realtors® (NAR) and Realtor.com®, the U.S. housing market remains far from balanced.

📉 Key Findings from the Report

$75K income households can afford just 21.2% of listings as of March 2025 – a minor increase from 20.8% in 2024, but still well below the 48.1% needed for a balanced market.
These buyers face a shortage of 416,000 homes priced at or below $255,000.
$100K earners can afford 37.1% of listings, down from 64.7% pre-pandemic, needing nearly 364,000 more homes priced under $340,000.
$50K earners, representing 1 in 3 U.S. households, can now afford only 8.7% of listings, a drop from 9.4% in 2024. They need 367,000 more homes priced under $170,000.

Meanwhile, households earning $250K+ can afford over 80% of listings—highlighting a widening gap in housing accessibility.

📈 Inventory Is Growing—But Still Not Enough

The supply of homes for sale grew nearly 20% year-over-year in March 2025. While that’s a step forward, it's still well below the availability seen before the pandemic. Encouragingly, more of the added inventory is at moderate-income price points—especially in the Midwest and South.

"More homes are hitting the market, and it's encouraging to see the greatest housing-supply gains among middle-income buyers."
— Nadia Evangelou, NAR Senior Economist

🏙️ Where Housing Affordability Is Improving

About 30% of the 100 largest U.S. metro areas are showing meaningful progress, dubbed “Areas Getting Closer to Balance.” These metros have closed affordability gaps by at least 5% and are now within 10 percentage points of a balanced market.

Examples:

Balanced or nearly balanced markets: Akron, OH; St. Louis, MO; Youngstown, OH; Pittsburgh, PA
Substantially improved: Raleigh, NC; Grand Rapids, MI; Des Moines, IA; Columbia, SC; Columbus, OH

⚖️ Mixed Progress in "Middle" Markets

44% of major metros are "stuck in the middle" – showing some improvement but still far from balanced.

Examples:

Seattle, WA & Washington, D.C. saw small but steady gains (~4%), but buyers still need to earn over $150K to afford half the listings.
Austin, TX; Salt Lake City, UT; Denver, CO made big strides, improving affordability by 20+ percentage points.
San Francisco, CA exceeded pre-pandemic affordability levels – a notable achievement in a high-cost market.

🚨 Areas Falling Behind

26% of metros are falling further behind. Despite economic strength, these regions remain severely unaffordable.

Examples of least affordable markets:

Los Angeles, CA
New York, NY
San Diego, CA
Oxnard, CA
Spokane, WA

"Even with more listings, buyers in these areas face a steep climb just to find something within reach."
— Danielle Hale, Realtor.com® Chief Economist

🗺️ State-Level Housing Affordability Trends

Most balanced housing markets:

Iowa, Ohio, Indiana, Illinois, West Virginia
→ Here, $75K-income buyers can afford 45%+ of homes.

Most improved states:

Delaware, Utah, Colorado, Florida, Arizona

Most in need of affordable homes:

Montana, Idaho, California, Massachusetts, Hawaii

Only region to surpass pre-pandemic affordability:

District of Columbia

🏠 The Outlook for Buyers

The slight improvements in inventory and affordability are positive signs, but the reality remains: First-time and moderate-income buyers are still struggling. Without major shifts—like building more affordable homes and adjusting lending options—many Americans will remain priced out.

"Listing prices don't match first-time buyers' budgets. Building smaller homes may be a crucial step toward closing the gap."
— Nadia Evangelou, NAR

📌 Final Thoughts

While housing inventory is finally rising, real affordability remains out of reach for too many Americans. The solution lies in creating more entry-level homes and balancing price growth with income realities. Until then, many home buyers—especially those earning less than six figures—will remain sidelined.