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U.S. Housing Affordability Crisis Deepens Despite Modest Inventory Gains

Home prices remain 39% above pre-pandemic levels, with low- and middle-income buyers still facing severe shortages of affordable options.

Rows of homes stand at a housing development on March 6, 2013 in Mesa, Arizona.
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Overview

  • National home prices in March 2025 were 39% higher than in March 2019, driven by pandemic-era demand and ongoing supply constraints.
  • Middle-income buyers saw a slight improvement in affordable listings, rising from 20.8% in March 2024 to 21.2% in March 2025, but remain far below the 48% balanced-market threshold.
  • Lower-income buyers face worsening conditions, with households earning $50,000 annually able to afford just 8.7% of listings, down from 9.4% a year ago and 27.8% in 2019.
  • High-income households earning $250,000 or more can afford over 80% of listings, highlighting a stark affordability divide across income levels.
  • Regional disparities persist, with Midwest markets like Akron and St. Louis nearing balance, while affordability worsens in cities like Los Angeles, San Diego, and New York City.