— Buying power is down nearly $30,000 nationally since 2019, despite a 15.7% rise in median income
— Higher mortgage rates are costing buyers an extra $7,200 per year in financing for a $400,000 home
In a market defined by higher interest rates and persistent affordability challenges, a new report from Realtor.com® reveals just how far buyers' budgets are being stretched. According to the August 2025 Buying Power Report, only 28.0% of homes on the market were priced within reach of the typical household as the maximum affordable home price for a median-income household in the U.S. has fallen to $298,000. The figure is down nearly $30,000 from $325,000, which is where it sat in 2019.
“Even as incomes grow, higher interest rates have eroded the real-world purchasing power of the typical American household,” said Danielle Hale, Chief Economist, Realtor.com®. “This dynamic is forcing many buyers to adjust their expectations, whether that means looking for smaller homes, moving farther out, or delaying the dream of homeownership altogether.”
And while wages have risen 15.7% in the same time frame, they haven't kept pace with borrowing costs. With mortgage rates hovering near 6.75% through July, the monthly mortgage payment on a $320,000 fixed-rate loan is $600 higher than it would have been at 2019's average rate. That's an additional $7,200 a year out of the average buyer's pocket, and that payment won't buy what it used to. In 2019 a $320,000 loan would have covered the entire median home price while today it would need to be accompanied by a nearly 28% down payment to buy the typical-listing (priced at $439,450).
Where Buyers Have Been Hit Hardest Buying power has dropped most dramatically in metros like Milwaukee, Wis., Houston,Texas, Baltimore, Md. New York City, and Kansas City, Mo., all of which have seen declines of 9-10.5% in what the median earner can afford. In Milwaukee, for example, which experienced the highest buying power percentage decrease of 10.5%, the maximum affordable home price fell from $314,000 to $281,000, a $33,000 drop.
While affordability declined, these metros still had a relatively high share of affordable homes-except for New York, where just 13.1% of listings in July were within reach of a median-income household.
Metro 2019 Max Share of 2025 Max Share of Difference Change Target Homes For Target Homes in Max in Home Sale !!!! Home For Sale Target Buying Price Target (July Price !!!! Target Price Power 2019) (July (2025 vs (%) 2025) 2019)Milwaukee-Waukesha, WI $314,000 58.2% $281,000 28.3% -$33,000 -10.5%Houston-Pasadena-The $330,000 59.2% $299,000 32.4% -$31,000 -9.4%Woodlands, TXBaltimore-Columbia-Towson, MD $397,000 63.1% $360,000 42.7% -$37,000 -9.3%New York-Newark-Jersey City, $397,000 28.2% $360,000 13.1% -$37,000 -9.3%NY-NJKansas City, MO-KS $335,000 63.5% $304,000 34.2% -$31,000 -9.3%
Where Has Buying Power Grown the Most? Only six of the 50 largest U.S. metros saw buying power increase since 2019. Leading the way was Cleveland, Ohio, where strong wage gains helped boost the affordable home price from $249,000 to $260,000 (+4.4%). Also, an impressive 50% of inventory on the market in Cleveland in July was affordable to median-earning households.
Pandemic boomtowns like Phoenix, Ariz., Tampa, Fla., and Austin have seen a slight boost in buying power thanks to rising wages. But even with that progress, rapid home price growth has outpaced income gains, leaving few truly affordable options. In fact, in all six markets where buying power has improved, the share of homes affordable to median-income buyers is still lower than it was in 2019.
Metro 2019 Max Share of 2025 Max Share of Difference Change Target Homes For Target Homes in Max in Home Sale !!!! Home For Sale !!!! Target Buying Price Target (July Price Target Price Power 2019) (July (2025 vs (%) 2025) 2019)Cleveland, OH $249,000 65.4% $260,000 50.0% $11,000 4.4%Phoenix-Mesa-Chandler, AZ $324,000 50.0% $332,000 13.7% $8,000 2.5%Richmond, VA $326,000 56.8% $331,000 24.8% $5,000 1.5%Indianapolis-Carmel-Greenwood, $298,000 64.3% $302,000 43.4% $4,000 1.3%INTampa-St. Petersburg- $276,000 54.0% $277,000 21.6% $1,000 0.4%Clearwater, FLAustin-Round Rock-San Marcos, $387,000 57.7% $388,000 31.5% $1,000 0.3%TX
The Impact of Shrinking Buying Power and What Would Alleviate It? Shrinking buying power isn't just a matter of dollars and cents, it's reshaping buyer behavior. As affordability declines, many buyers are competing more aggressively for lower-priced homes, turning to rentals when homeownership feels out of reach, or delaying their plans altogether-especially younger households without existing equity. This shift in demand also affects sellers, who may need to adjust pricing expectations or prepare for a longer time on market. Looking ahead, restoring lost buying power will likely depend on a combination of modestly lower mortgage rates, stronger wage growth, and most critically, a boost in housing supply, particularly in the affordable segment. Until those conditions improve, today's buyers will need to remain both strategic and flexible in navigating the market.
50 Largest Metros Data Changes in Buying Power Since 2019 (Alphabetical)
Geography Median 2019Max Share of Median 2025 Max Share of Difference Change 2019 HH Target Homes 2025 HH Target Homes in Max in Income Home For Sale Income Home For Sale Target Buying Price !!!! Target Price !!!! Target Price Power (July (July (2025 vs (%) 2019) 2025) 2019)USA $68,073 $325,000 55.7% $78,770 $298,000 28.0% -$27,000 -8.3%Atlanta-Sandy Springs-Roswell, $71,742 $343,000 60.7% $87,947 $333,000 31.4% -$10,000 -2.9%GAAustin-Round Rock-San $80,954 $387,000 57.7% $102,412 $388,000 31.5% $1,000 0.3%Marcos, TXBaltimore-Columbia-Towson, $83,160 $397,000 63.1% $95,068 $360,000 42.7% -$37,000 -9.3%MDBirmingham, AL $58,366 $279,000 58.2% $71,644 $271,000 41.3% -$8,000 -2.9%Boston-Cambridge-Newton, $94,430 $451,000 38.1% $109,295 $414,000 9.6% -$37,000 -8.2%MA-NHBuffalo-Cheektowaga, NY $60,105 $287,000 70.1% $71,055 $269,000 47.1% -$18,000 -6.3%Charlotte-Concord-Gastonia, $66,399 $317,000 50.7% $81,514 $309,000 20.8% -$8,000 -2.5%NC-SCChicago-Naperville-Elgin, IL-IN $75,379 $360,000 62.3% $86,627 $328,000 41.2% -$32,000 -8.9%Cincinnati, OH-KY-IN $66,825 $319,000 68.9% $80,109 $303,000 43.1% -$16,000 -5.0%Cleveland, OH 52,178 $249,000 65.4% $68,695 $260,000 49.9% $11,000 4.4%Columbus, OH $67,207 $321,000 64.6% $80,469 $305,000 34.8% -$16,000 -5.0%Dallas-Fort Worth-Arlington, TX $72,265 $345,000 55.6% $88,783 $336,000 30.1% -$9,000 -2.6%Denver-Aurora-Centennial, CO $85,641 $409,000 37.9% $106,833 $405,000 19.2% -$4,000 -1.0%Detroit-Warren-Dearborn, MI $63,474 $303,000 63.5% $72,493 $275,000 48.8% -$28,000 -9.2%Grand Rapids-Wyoming- $65,739 $314,000 63.5% $82,065 $311,000 31.9% -$3,000 -1.0%Kentwood, MIHartford-West Hartford-East $77,005 $368,000 68.6% $94,838 $359,000 36.8% -$9,000 -2.4%Hartford, CTHouston-Pasadena-The $69,193 $330,000 59.2% $78,845 $299,000 32.4% -$31,000 -9.4%Woodlands, TXIndianapolis-Carmel- $62,502 $298,000 64.3% $79,724 $302,000 43.4% $4,000 1.3%Greenwood, INJacksonville, FL $65,880 $315,000 58.4% $81,893 $310,000 32.1% -$5,000 -1.6%Kansas City, MO-KS $70,215 $335,000 63.5% $80,127 $304,000 34.2% -$31,000 -9.3%Las Vegas-Henderson-North $62,107 $297,000 43.8% $72,504 $275,000 12.8% -$22,000 -7.4%Las Vegas, NVLos Angeles-Long Beach- $77,774 $371,000 10.3% $91,380 $346,000 1.6% -$25,000 -6.7%Anaheim, CALouisville/Jefferson County, KY- $61,172 $292,000 64.7% $72,566 $275,000 40.9% -$17,000 -5.8%INMemphis, TN-MS-AR $54,859 $262,000 61.4% $66,946 $254,000 35.3% -$8,000 -3.1%Miami-Fort Lauderdale-West $60,141 $287,000 36.9% $74,274 $281,000 23.4% -$6,000 -2.1%Palm Beach, FLMilwaukee-Waukesha, WI $65,845 $314,000 58.2% $74,222 $281,000 28.3% -$33,000 -10.5%Minneapolis-St. Paul- $83,698 $400,000 67.3% $96,855 $367,000 37.0% -$33,000 -8.3%Bloomington, MN-WINashville-Davidson– $70,262 $335,000 46.4% $85,166 $323,000 11.8% -$12,000 -3.6%Murfreesboro–Franklin, TNNew York-Newark-Jersey City, $83,160 $397,000 28.2% $94,960 $360,000 13.1% -$37,000 -9.3%NY-NJOklahoma City, OK $60,605 $289,000 62.9% $71,503 $271,000 40.5% -$18,000 -6.2%Orlando-Kissimmee-Sanford, $61,876 $295,000 51.3% $74,895 $284,000 18.2% -$11,000 -3.7%FLPhiladelphia-Camden- $74,533 $356,000 65.0% $88,483 $335,000 38.7% -$21,000 -5.9%Wilmington, PA-NJ-DE-MDPhoenix-Mesa-Chandler, AZ $67,896 $324,000 50.0% $87,718 $332,000 13.7% $8,000 2.5%Pittsburgh, PA $62,638 $299,000 71.6% $72,935 $276,000 54.6% -$23,000 -7.7%Portland-Vancouver-Hillsboro, $78,439 $375,000 30.1% $94,748 $359,000 11.4% -$16,000 -4.3%OR-WAProvidence-Warwick, RI-MA $70,967 $339,000 49.5% $85,421 $324,000 8.4% -$15,000 -4.4%Raleigh-Cary, NC $80,096 $382,000 60.3% $98,138 $372,000 29.7% -$10,000 -2.6%Richmond, VA $68,324 $326,000 56.8% $87,394 $331,000 24.8% $5,000 1.5%Riverside-San Bernardino- $70,954 $339,000 36.1% $86,146 $326,000 8.5% -$13,000 -3.8%Ontario, CASacramento-Roseville-Folsom, $76,706 $366,000 29.6% $93,641 $355,000 8.0% -$11,000 -3.0%CASan Antonio-New Braunfels, TX $62,355 $298,000 58.5% $73,281 $278,000 34.2% -$20,000 -6.7%San Diego-Chula Vista- $83,985 $401,000 14.0% $103,066 $390,000 3.2% -$11,000 -2.7%Carlsbad, CASan Francisco-Oakland- $114,696 $548,000 18.4% $133,542 $506,000 11.9% -$42,000 -7.7%Fremont, CASan Jose-Sunnyvale-Santa $130,865 $625,000 9.9% $156,664 $593,000 6.3% -$32,000 -5.1%Clara, CASeattle-Tacoma-Bellevue, WA $94,027 $449,000 33.6% $113,456 $430,000 11.0% -$19,000 -4.2%St. Louis, MO-IL $66,417 $317,000 72.9% $79,869 $303,000 52.2% -$14,000 -4.4%Tampa-St. Petersburg- $57,906 $276,000 54.0% $73,079 $277,000 21.6% $1,000 0.4%Clearwater, FLTucson, AZ $56,169 $268,000 53.7% $67,909 $257,000 11.7% -$11,000 -4.1%Virginia Beach-Chesapeake- $69,329 $331,000 60.7% $80,312 $304,000 26.0% -$27,000 -8.2%Norfolk, VA-NCWashington-Arlington- $105,659 $504,000 58.7% $123,209 $467,000 31.8% -$37,000 -7.3%Alexandria, DC-VA-MD-WV
Methodology:2019 income data from 1-year ACS, 2025 income data from Claritas and is based on the latest census income estimates. Housing payments include principal and interest only, assuming 20% down payment, a 4% mortgage interest rate for 2019 and 6.74% mortgage rate for 2025. Maximum affordable housing payment calculated using the 30% affordability rule of thumb.
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Media contact:Asees Singh, press@realtor.com
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