Americans Need to Earn 70.1% More Today Than Six Years Ago to Afford the Median-priced Home
Rhea-AI Summary
Positive
- Active listings increased 30.6% YoY, providing more choices for buyers
- 18.0% of listings saw price reductions, indicating more seller flexibility
- New listings up 8.2% MoM and 9.2% YoY, improving inventory conditions
- Market showing signs of rebalancing, potentially creating opportunities for prepared buyers
Negative
- Required income to afford median-priced home surged 70.1% in six years to $114,000
- Pending home sales declined 3.2% YoY, fourth consecutive month of decreases
- Nationwide inventory still 16.3% below 2017-2019 pre-pandemic levels
- Median listing price increased 36.9% compared to April 2019
News Market Reaction – NWSA
In the trading session that priced this news, NWSA declined 0.22%, reflecting a mild negative market reaction.
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AI-generated analysis. How Rhea-AI works. Not financial advice.
- Americans now need to earn
$114,000 - Pending home sales fall for the fourth straight month YoY, down
3.2% - Active listings rise
30.6% YoY, surpassing April 2020 levels - Price reductions hit
18.0% of listings
"Even with today's affordability hurdles, meaningful changes in the market could give buyers a better shot at finding a home," said Danielle Hale, Chief Economist at Realtor.com®. "The number of homes for sale is rising in many markets, giving shoppers more choices than they've had in years. Sellers are becoming more flexible on pricing, underscored by the price reductions we're seeing, and while higher mortgage rates are certainly weighing on demand, the silver lining is that the market is starting to rebalance. This could create opportunities for buyers who are prepared."
April 2025 Housing Metrics – National (*For metro stats, see Table 1 and Table 2 below)
Metric | April 2025 | Change over Mar. 2025 (MoM) | Change over Apr. 2024 (YoY) | Change over |
Median listing price | +1.5 % | +0.3 % | +36.9 % | |
Active listings | 959,251 | +7.5 % | +30.6 % | -15.6 % |
New listings | 471,788 | +8.2 % | +9.2 % | -14.6 % |
Median days on market | 50 | -3 days | +4 days | -4 days |
Share of active listings with price reductions | 18.0 % | +0.5 percentage points | +2.5 percentage points | +3.5 percentage points |
Median List Price Per Sq.Ft. | +1.0 % | +1.1 % | +54.0 % |
A
Since 2019, the income required to afford the median-priced home has risen
Markets with the Highest Required Incomes to Afford a Home
Metro Area | Required Income to Afford Median Home | Required Income vs Apr. 2019 |
+54.3 % | ||
+30.5 % | ||
+86.0 % | ||
+73.4 % | ||
+54.9 % | ||
+81.9 % | ||
+69.4 % | ||
+42.2 % | ||
+61.7 % | ||
+59.1 % |
Five
January Set the Tone and April Followed: Pending Home Sales Continue to Drop
From October to December last year, pending home sales were relatively stronger on a year-over-year basis. But since January, the momentum has shifted, and in April, pending home sales declined
Shifts in Pending Home Sales YoY
Month | YoY Change in Pending Home Sales |
April 2025 | - 3.2 % |
March 2025 | - 5.3 % |
February 2025 | - 5.4 % |
January 2025 | - 4.1 % |
December 2024 | + 2.4 % |
November 2024 | + 8.2 % |
October 2024 | + 4.3 % |
Where's the Silver Lining?
In light of affordability concerns and more choice for buyers, data suggest that some sellers are meeting buyers in the middle. This month,
The West (+
The full April 2025 monthly housing trends report with additional findings can be found here.
*Table 1: April 2025 Top 50 Metros Median Listing Price and Income
Metro Area | Median Listing | Median Listing | Median | Median Listing | Required | Required |
-0.8 % | -1.3 % | 26.9 % | 57.7 % | |||
-5.9 % | -5.1 % | 41.9 % | 76.3 % | |||
11.5 % | 4.0 % | 19.0 % | 47.9 % | |||
1.5 % | 0.8 % | 18.8 % | 47.6 % | |||
0.9 % | 1.6 % | 46.4 % | 81.9 % | |||
-1.7 % | 1.2 % | 31.8 % | 63.8 % | |||
4.0 % | 1.0 % | 25.6 % | 56.1 % | |||
-4.4 % | -0.5 % | 9.8 % | 36.4 % | |||
-7.3 % | 2.3 % | 23.8 % | 53.8 % | |||
7.0 % | 8.5 % | 34.5 % | 67.1 % | |||
-4.9 % | 1.3 % | 24.8 % | 55.1 % | |||
-4.4 % | -0.7 % | 19.4 % | 48.4 % | |||
-4.1 % | -1.1 % | 14.5 % | 42.2 % | |||
1.4 % | 1.8 % | 1.3 % | 25.8 % | |||
-2.6 % | 1.0 % | 36.9 % | 70.2 % | |||
6.8 % | 7.0 % | 49.7 % | 86.0 % | |||
0.2 % | -0.6 % | 14.7 % | 42.5 % | |||
-3.4 % | -0.8 % | 18.7 % | 47.4 % | |||
-4.8 % | -2.9 % | 28.1 % | 59.2 % | |||
-5.3 % | 0.5 % | 23.9 % | 53.9 % | |||
0.0 % | 0.9 % | 50.1 % | 86.5 % | |||
0.3 % | 1.4 % | 49.7 % | 86.0 % | |||
-0.6 % | 1.9 % | 16.2 % | 44.4 % | |||
1.8 % | 1.6 % | 56.8 % | 94.8 % | |||
-5.6 % | -4.2 % | 27.8 % | 58.8 % | |||
2.3 % | 5.3 % | 26.5 % | 57.1 % | |||
-0.5 % | -0.2 % | 20.4 % | 49.6 % | |||
-4.0 % | -1.4 % | 48.5 % | 84.6 % | |||
1.9 % | -2.3 % | 36.3 % | 69.4 % | |||
-2.3 % | 0.4 % | 27.4 % | 58.3 % | |||
-3.4 % | -2.1 % | 35.8 % | 68.7 % | |||
1.4 % | 2.7 % | 36.4 % | 69.4 % | |||
-2.2 % | -0.9 % | 41.4 % | 75.7 % | |||
0.5 % | 1.6 % | 33.2 % | 65.6 % | |||
0.0 % | -0.5 % | 29.2 % | 60.6 % | |||
11.5 % | 6.9 % | 55.2 % | 92.8 % | |||
-0.5 % | -0.3 % | 22.0 % | 51.6 % | |||
0.0 % | 2.3 % | 37.2 % | 70.5 % | |||
0.4 % | 0.3 % | 46.8 % | 82.4 % | |||
-2.5 % | -1.5 % | 30.1 % | 61.7 % | |||
-1.3 % | -2.3 % | 15.0 % | 42.9 % | |||
-6.7 % | -3.0 % | 39.5 % | 73.4 % | |||
-3.1 % | -5.6 % | 5.0 % | 30.5 % | |||
-4.6 % | -1.8 % | 24.2 % | 54.3 % | |||
0.9 % | 3.4 % | 24.7 % | 54.9 % | |||
0.2 % | -0.9 % | 31.1 % | 62.9 % | |||
-2.4 % | -2.3 % | 46.5 % | 82.0 % | |||
-3.2 % | -0.7 % | 32.7 % | 64.9 % | |||
3.8 % | 4.8 % | 39.7 % | 73.6 % | |||
-0.6 % | -2.9 % | 28.1 % | 59.1 % |
*Table 2: April 2025 Top 50 Metros Inventory, Days on Market and Price Reduction
Metro Area | Active Listing | New Listing | Median Days | Median Days | Price– | Price- |
45.2 % | 8.8 % | 46 | 7 | 20.8 % | 3.1 pp | |
24.5 % | -0.6 % | 44 | 2 | 25.9 % | 1.2 pp | |
47.7 % | 11.3 % | 29 | -7 | 13.4 % | 1.4 pp | |
18.2 % | -1.9 % | 50 | 4 | 16.1 % | 1.4 pp | |
25.7 % | 20.1 % | 25 | 1 | 12.1 % | 1.7 pp | |
3.2 % | 8.4 % | 35 | 1 | 6.5 % | 1.2 pp | |
53.0 % | 17.9 % | 42 | 5 | 21.1 % | 4.2 pp | |
11.4 % | 1.9 % | 33 | -1 | 10.4 % | 1.8 pp | |
24.0 % | 9.6 % | 34 | 3 | 13.2 % | 2.5 pp | |
21.0 % | 3.6 % | 38 | -2 | 13.0 % | 2.1 pp | |
37.9 % | 7.5 % | 31 | 6 | 18.8 % | 3.6 pp | |
42.8 % | 11.1 % | 43 | 3 | 25.8 % | 4.1 pp | |
65.0 % | 24.7 % | 36 | 4 | 27.2 % | 6.1 pp | |
16.7 % | 10.6 % | 37 | -3 | 12.6 % | 2.7 pp | |
15.4 % | -3.6 % | 33 | 2 | 9.1 % | -0.3 pp | |
15.2 % | 10.2 % | 30 | -1 | 6.7 % | 1.1 pp | |
33.9 % | 10.7 % | 44 | 1 | 19.2 % | 1.1 pp | |
19.7 % | 7.5 % | 40 | 2 | 19.8 % | 1.7 pp | |
35.2 % | 0.4 % | 57 | 7 | 27.6 % | 2.7 pp | |
11.8 % | 11.1 % | 47 | 0 | 12.6 % | 0.5 pp | |
60.7 % | 18.2 % | 44 | 5 | 21.4 % | 7.5 pp | |
54.6 % | 8.3 % | 44 | 5 | 14.3 % | 5.6 pp | |
22.9 % | 10.5 % | 39 | -1 | 14.7 % | 1.0 pp | |
30.8 % | -7.6 % | 56 | 8 | 20.6 % | 0.4 pp | |
40.7 % | -1.0 % | 72 | 8 | 20.1 % | 1.2 pp | |
2.3 % | 5.2 % | 30 | -1 | 8.7 % | 1.8 pp | |
8.9 % | 8.4 % | 33 | -3 | 10.6 % | 0.0 pp | |
34.3 % | 4.7 % | 47 | 16 | 18.8 % | -0.5 pp | |
3.2 % | 3.3 % | 45 | -1 | 7.6 % | 0.6 pp | |
30.0 % | -0.9 % | 43 | 2 | 18.4 % | 0.4 pp | |
44.7 % | 5.3 % | 62 | 8 | 23.4 % | 2.8 pp | |
18.2 % | 6.2 % | 35 | -5 | 12.6 % | 1.2 pp | |
33.3 % | 22.9 % | 52 | -3 | 31.3 % | 7.6 pp | |
16.8 % | 8.9 % | 47 | -5 | 15.7 % | 2.4 pp | |
30.6 % | 8.2 % | 44 | 5 | 23.3 % | 2.5 pp | |
33.9 % | 10.2 % | 29 | 0 | 8.2 % | 1.5 pp | |
58.2 % | 16.2 % | 43 | 5 | 20.1 % | 6.6 pp | |
20.6 % | 12.9 % | 36 | -5 | 9.9 % | 1.5 pp | |
52.4 % | 12.6 % | 52 | 7 | 18.3 % | 4.3 pp | |
49.6 % | 13.1 % | 38 | 6 | 17.9 % | 3.3 pp | |
20.1 % | 9.5 % | 58 | 4 | 25.6 % | 2.4 pp | |
70.1 % | 14.4 % | 37 | 4 | 17.8 % | 5.9 pp | |
42.6 % | 5.5 % | 33 | 6 | 13.4 % | 4.1 pp | |
67.6 % | 2.4 % | 24 | 3 | 12.0 % | 4.3 pp | |
50.1 % | 7.5 % | 30 | 2 | 14.4 % | 5.6 pp | |
16.8 % | 0.6 % | 39 | 4 | 13.5 % | 1.5 pp | |
32.1 % | 6.0 % | 58 | 6 | 29.3 % | 1.8 pp | |
56.5 % | 14.9 % | 51 | 6 | 23.5 % | 4.6 pp | |
32.1 % | 9.4 % | 35 | 3 | 16.0 % | 2.2 pp | |
69.3 % | 16.1 % | 25 | -5 | 13.8 % | 3.6 pp |
Methodology
Realtor.com housing data as of April 2025. Listings include the active inventory of existing single-family homes and condos/townhomes/row homes/co-ops for the given level of geography on Realtor.com; new construction is excluded unless listed via an MLS that provides listing data to Realtor.com. Realtor.com data history goes back to July 2016. The 50 largest
About Realtor.com®
Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.
Media contact: Asees Singh, press@realtor.com
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SOURCE Realtor.com