From CNBC: 2025-05-15 09:00:00

The housing market continues to face challenges with low supply and high prices, with prices in March 39% higher than pre-pandemic levels. Demand is strongest for lower-priced homes, but supply remains insufficient. Affordability is a key issue, with middle-income buyers seeing some improvement in accessible listings, but lower-income buyers facing greater challenges.

For households earning between $75,000 and $100,000 annually, the supply of affordable homes has increased slightly, but remains below pre-pandemic levels. The market needs around 416,000 more listings priced at or below $255,000 to achieve balance between buyers and sellers. Higher-income households have better access to the market.

Progress in inventory varies across the country, with gains concentrated in the Midwest and South. Markets like Akron, St. Louis, and Pittsburgh are considered balanced, while others, like Raleigh and Des Moines, have added more affordable listings but still fall short of demand. Over 40% of major metropolitan markets are still struggling to meet demand for affordable housing.

Some overheated markets, like Austin and San Francisco, have seen an increase in affordable listings, surpassing pre-pandemic levels. However, markets in Southern California, New York City, and others continue to worsen due to factors like underbuilding, limited land, high construction costs, and zoning laws. Homebuilders are facing challenges in constructing affordable homes.

Overall, the housing market is facing a complex situation with varying levels of affordability and supply across different regions. The report highlights the need for a balanced market and efforts to increase affordable housing inventory to meet the diverse needs of buyers.



Read more at CNBC: How unaffordable the housing market is and where it’s getting worse