$30K Boost in Buying Power Reshapes Home Market for Aspiring Buyers

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• Median earners can shop from about 82,300 additional listings compared with last year

  80% confidence

• Sellers aged 70+ accepting about $20,270 less on average than younger counterparts

  80% confidence

• Recent trough in buying power was $272,224 in October 2023 when mortgage rates were 7.62%

  80% confidence

• Forecast existing-home sales rising 4% in 2026 versus 2025

  80% confidence

• The historically low share of first-time buyers underscores the real-world consequences of a housing market starved for affordable inventory

  80% confidence

• Unfolding in the housing market is a tale of two cities, with repeat buyers with housing equity better positioned while first-time buyers keep struggling

  80% confidence

• Median-income household would still devote 32.3% of income to a typical mortgage payment

  80% confidence

• Typical principal-and-interest payment (excluding taxes and insurance, with 20% down) is 8.4% below last year's level

  80% confidence

• Median-income U.S. household can now afford home priced at $331,483, up $30,302 from year earlier, strongest affordability since March 2022

  80% confidence

• Expect mortgage rates to drift lower through 2026

  80% confidence

• Average mortgage rates moved down from 6.96% in January 2025 to 6.10% last month

  80% confidence

• Sellers aged 80+ receive roughly 5% less for homes they've held for about 11 years compared to those in their 40s and 50s

  80% confidence

• Median existing single-family home price reached record $412,500 in 2024

  80% confidence

• Buyer would need at least $126,700 in annual income to afford payments on median-priced home using 31% debt-to-income ratio

  80% confidence

Cited in these Via News reports

• US Home Buyers Need $127K Annual Income as Mortgage Barriers Eclipse Most Western Markets →
• US Housing Market Splits as Middle Class Priced Out While Global Cities Face Similar Affordability Crisis →
• US Middle-Class Buyers Priced Out: Only 21% of Homes Affordable as Market Hits $412,500 Median →