Headline Overview
According to the May 2025 National Association of Realtors (NAR) and Realtor.com 2025 report, U.S. households earning $75,000 annually—near the national median income—can afford a mere 21.2% of available home listings (as of March 2025), up only slightly from 20.8% a year earlier . In simple terms, that means less than one in five homes are financially accessible to this income group .
- Historical Comparison & Market Balance
Pre-pandemic levels: In 2019, middle-income households could afford nearly 49% of homes—more than double today’s affordability rate .
Balanced market benchmark: A balanced scenario would allow this income group to afford 48.1% of listings. Achieving that would require adding 416,000 more homes priced at or below $255,000 to the market .
- Affordability Across Income Segments
Annual Income % of Listings Affordable (2025) Pre-Pandemic Benchmark Listings Required to Balance Market
$75,000 (median) 21.2% ~49% +416,000 listings ≤ $255,000
$100,000 37.1% ~64.7% +364,000 listings ≤ $340,000
$50,000 8.7% ~9.4% +367,000 listings ≤ $170,000
≥ $250,000 ≥ 80% — —
$100,000 earners: Can afford only 37.1% of listings, down from 64.7% in 2019; they would need 364,000 more homes at or below $340K to reach balance .
$50,000 earners: Afford just 8.7% of listings—a slight decline from the previous year—and would need 367,000 additional listings, maxing at $170K, to reach parity .
High-income households ($250,000+): Have access to at least 80% of listings, demonstrating the stark disparities in affordability .
- Supply Gains and Geographic Disparities
Inventory increase: For-sale housing listings rose by nearly 20% year-over-year as of March 2025, but are still below pre-pandemic norms .
Metropolitan area classification:
30% are “Getting Closer to Balance”
44% are “Stuck in the Middle”
26% are “Falling Further Behind” in terms of affordability .
Improving markets: Akron, St. Louis, Youngstown, Pittsburgh, Raleigh, Des Moines, Grand Rapids, Columbia (SC), and Columbus have made noticeable gains in housing accessibility for lower-income segments .
Best performing states: Iowa, Ohio, Indiana, Illinois, and West Virginia allow $75K households to afford more than 45% of listings—close to the balanced threshold .
Severe shortfalls: States like Montana, Idaho, California, Massachusetts, and Hawaii remain severely unaffordable .
- Additional Market Pressures
Affordability issues persist even as inventory improves, largely due to:
High mortgage rates (~6–7%)
Low buyer activity relative to sellers, leading to imbalanced markets .
Rising median home prices, now over $420,000, making monthly payments unaffordable for middle-income earners .
- Key Takeaways
Middle-income Americans (earning $75K) now see fewer than 1 in 5 homes as affordable—down from nearly half before the pandemic.
The lack of listings in price ranges accessible to median-income households is the primary barrier to homeownership.
While inventory growth is a step in the right direction, it is not sufficient without significantly more homes priced below $255K.
Progress is uneven across the nation—some Midwest and Southern markets show promise, while others, especially on the coasts, remain largely out of reach.