A typical U.S. homebuyer’s spending power has dropped by $27,000 since 2019, a new Realtor.com report finds.
For a household earning the national median income, the maximum affordable home price has fallen to $298,000 in 2025 from $325,000 in 2019, even though wages have increased 16% in that time, the study says.
As a result, the share of affordable listings for median earners has fallen from 55.7% to 28%. That drop comes as the median home price has climbed to $439,450, per Realtor.com’s listings data. The decline reflects the impact of rising home prices and mortgage rates, combined with only modest wage growth, the study says.
The analysis used U.S. Census income data for 2019, and 2025 estimates from analytics firm Claritas, which relies on Census figures. All data is reported on a calendar-year basis, covering Jan. 1 through Dec. 31.
The calculations assume a 20% down payment, a 4% mortgage rate in 2019 and a 6.74% rate in 2025. Affordability is measured by the 30% rule of thumb, which assumes households can devote up to 30% of their gross income to housing costs.
