U.S. households earning $75,000 a year can only afford 21.2% of home listings as of March – up slightly from 20.8% in March 2024, according to the National Association of Realtors (NAR) and Realtor.com 2025 Housing Affordability & Supply report.
Even though inventory is up nearly 20% from a year ago, it is still far below pre-pandemic levels. As a result, home prices are at all-time peaks, with no sign of falling anytime soon.
“The housing market is at a turning point,” says Nadia Evangelou, senior economist and director of real estate research for NAR, in the report. “More homes are hitting the market, and it’s encouraging to see the greatest housing-supply gains among middle-income home buyers.”
However, the increase in inventory isn’t enough: The housing market still needs 367,000 more home listings at a maximum price of $170,000, 416,000 more priced at or below $255,000 and 364,000 more priced under $340,000 in order to meet demand, according to the report.
Montana, Idaho, California, Massachusetts and Hawaii have the largest shortfalls in affordable housing, according to NAR’s data.
Photo: Brian Zajac