Real Estate Markets

Middle-income buyers can afford just 21% of homes currently for sale, down from 50% pre-pandemic, as median home prices hit a record $412,500 in 2024. The affordability crisis requires annual income of $126,700 for typical financing, creating a bifurcated market dominated by equity-rich repeat buyers while first-time buyers remain historically underrepresented.

First-time buyers now require $126,700 in annual income to afford the median-priced home using 3% down, pushing their median age to record levels in 2025. Cash purchases reached all-time highs in early 2025 as mortgage rates remain elevated due to Middle East conflict inflation expectations, creating a two-tiered market favoring repeat buyers with equity.