For millions of Americans dreaming of owning a home, the path to affordable housing remains narrow but there are signs of gradual improvement, especially for moderate-income buyers.
According to the 2025 Housing Affordability & Supply Report from the National Association of Realtors® (NAR), households earning $75,000 a year can now afford 21.2% of all active listings, a slight increase from 20.8% in March 2024. While that’s the largest gain of any income group, it still reflects the deep affordability gap that continues to challenge middle-income buyers.
“More homes are hitting the market, and that’s promising,” said Nadia Evangelou, NAR’s senior economist. “The biggest supply gains are happening at moderate income price points but we’re still far from where we need to be.”
🔍 A Closer Look at the Numbers
The report offers a real-time snapshot of what buyers across different income levels can afford. Here’s what the latest data shows:
- National for-sale inventory is up 20% compared to March 2024 but still well below pre-pandemic levels.
- In March 2019, households earning $75K could afford nearly 49% of all listings. Today, that number is less than half.
- To return to a balanced market, where this income group could afford roughly 48.1% of listings, the U.S. would need 416,000 additional homes priced under $255,000.
💸 Other Income Groups Face Similar Gaps
Households making $100,000 annually now qualify for 37.1% of listings, up slightly from 36.9% last year but still far below the 64.7% they could afford pre-pandemic. The market would need another 364,000 homes priced under $340,000 to restore balance for this group.
Lower-income families are struggling even more:
- A household earning $50,000 can now afford just 8.7% of listings, down from 9.4% a year ago.
- Yet, these households represent nearly one-third of all U.S. families. In a fair market, they should be able to afford one-third of listings.
- Achieving balance would require 367,000 homes priced under $170,000.
Meanwhile, higher-income earners ($250K+) can afford 80% or more of the housing market, illustrating a widening gap between low/middle-income buyers and wealthier households.
🏡 Where the Market Is Gaining Ground
Despite the challenges, some regions are making real progress:
- About 30% of the 100 largest U.S. metro areas are now classified as “Getting Closer to Balance” where affordability has improved significantly and more listings are within reach for a broader range of buyers.
- Cities like Akron, St. Louis, Youngstown, and Pittsburgh are close to meeting healthy housing supply benchmarks.
- Other metros, including Raleigh (NC), Des Moines (IA), Columbus (OH), and Grand Rapids (MI), are also seeing notable gains in affordable listings.
“We’re encouraged to see affordable listings increase in places that were once considered out of reach,” said Danielle Hale, chief economist. “That said, progress hasn’t been equal across the country.”
🌆 Areas Stuck in the Middle or Falling Behind
Not all markets are improving.
- 44% of the top 100 metros are considered “Stuck in the Middle”, where some gains have been made but affordability gaps still persist.
- Seattle and Washington, D.C. saw small increases in affordable homes about 4 percentage points but families in these cities still need to earn over $150,000 to afford even half the available homes.
- Austin (TX), Salt Lake City (UT), Denver (CO), and surprisingly, San Francisco (CA), made significant progress, improving affordability by around 20 percentage points.
Yet, 26% of metros are actually moving in the wrong direction.
- Cities like Los Angeles, Oxnard, San Diego, New York City, and Spokane have some of the deepest affordability gaps, even after recent gains.
- These markets would need massive increases in affordable housing to reach a healthy balance.
📍 States Leading the Way
Some states stand out for their progress:
- Iowa, Ohio, Indiana, Illinois, and West Virginia are the most balanced markets, where a $75,000 income can afford 45% or more of active listings.
- States showing the most improvement include Delaware, Utah, Colorado, Florida, and Arizona.
- Only Washington D.C. has fully recovered to pre-pandemic affordability levels.
🧠 Final Takeaway: Small Wins, But Much Work Ahead
Even as inventory rises and some markets show signs of rebalancing, the housing affordability gap is still substantial especially for low- and moderate-income families.
“To many buyers, the market still feels out of reach,” said Evangelou. “Listing prices aren’t matching household budgets but if builders continue to focus on smaller, more affordable homes, we could see meaningful progress.”
The housing market may not be balanced yet, but the slow, steady shifts in affordability and supply suggest there’s hope ahead for those who’ve been priced out in recent years.