A typical U.S. homebuyer’s spending power has dropped by $27,000 since 2019, a new Realtor.com report finds.
For a household earning the national median income, the maximum affordable home price has fallen to $298,000 in 2025 from $325,000 in 2019, even though wages have increased 16% in that time, the study says.
As a result, the share of affordable listings for median earners has fallen from 55.7% to 28%. That drop comes as the median home price has climbed to $439,450, per Realtor.com’s listings data. The decline reflects the impact of rising home prices and mortgage rates, combined with only modest wage growth, the study says.
The analysis used U.S. Census income data for 2019, and 2025 estimates from analytics firm Claritas, which relies on Census figures. All data is reported on a calendar-year basis, covering Jan. 1 through Dec. 31.
The calculations assume a 20% down payment, a 4% mortgage rate in 2019 and a 6.74% rate in 2025. Affordability is measured by the 30% rule of thumb, which assumes households can devote up to 30% of their gross income to housing costs.
On a national level, buying power has dropped by 8.3% since 2019.
The study also examined changes in buying power across the 50 largest U.S. metros. The steepest declines, ranked by percentage loss since 2019, were concentrated in these five markets:
Milwaukee
Houston
Baltimore
New York
Kansas City, Missouri
In contrast, only six metros posted gains in buying power, according to Realtor.com’s data. The Cleveland metro area saw the biggest increase, up 4.4% or $11,000.
With fewer homes available for median earners, today’s housing market is widening the gap between the haves and have-nots, with younger Americans less likely to buy a home, the study says.
As a result, the share of first-time buyers has fallen to historic lows. And those who do purchase are increasingly wealthier, older and more likely to rely on family for financial help.
Homeowners currently hold nearly 43 times the wealth of renters, up from 39 times in 2022, per Realtor.com’s data. That growing imbalance underscores how the market favors those with existing equity, making it even harder for less affluent buyers to compete.
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