Home Affordability Improved in All 50 States: What Buyers Need To Know

For the past few years, affordability has been one of the biggest reasons buyers have put their home search on hold. Maybe you did the same.

At some point, you may have looked at the numbers, saw what a monthly mortgage payment would be, and decided to wait for the market to become more manageable. But there’s encouraging news you may have missed.

Over the past year, housing affordability has improved in all 50 states. Yes, every single one.

That’s according to new research from First American. And while buying a home is still more expensive than what’s historically normal, the affordability pressure many buyers have felt over the last several years is finally starting to ease.

Some Markets Are Seeing Bigger Improvements

One of the most important things to understand is this isn’t limited to one part of the country or just a few select markets. Affordability is improving almost all over the country.

Of course, real estate is always local. Conditions can vary a lot from one state, city, or neighborhood to the next. But overall, the market is becoming more favorable for buyers. In fact, affordability has improved in 48 of the top 50 metros over the past year.

That same research also highlights the top 10 cities seeing the biggest gains in affordability:

Top 10 Cities Where Home Affordability Has Improved the Most

1. Miami, FL
2. Atlanta, GA
3. Seattle, WA
4. Denver, CO
5. Pittsburgh, PA
6. Tampa, FL
7. Salt Lake City, UT
8. Riverside, CA
9. Raleigh, NC
10. Las Vegas, NV

If you’re wondering why some markets are improving faster than others, a lot of it comes down to home inventory.

When there are more homes for sale, the market becomes more balanced. This can help improve affordability by giving buyers more negotiating power. With more options available, buyers may have a better chance of finding a home that fits their budget, and they may also be in a stronger position to ask for seller concessions, price reductions, or closing cost assistance.

That can make a bigger difference than many people expect.

What Does This Mean for Buyers?

Home affordability challenges haven’t disappeared altogether, obviously. Buying a home is still a major financial decision, and housing prices remain high in many markets. But the overall nationwide trend is moving in a direction that gives buyers more opportunity than they’ve had in recent years.

As Chen Zhao, Head of Economic Research at Redfin, explains:

“The housing affordability crisis is showing signs of easing. . . opening the door for more Americans to make the jump to homeownership.”

Conclusion

If you’ve been waiting on the sidelines for affordability to improve, this may be the sign you’ve been hoping for. To find out what’s happening in your local market and how much buying power you may have today, connect with a trusted local real estate agent.