#housingdata

“Across the country as a whole, conditions have improved for prospective buyers relative to renters. House prices have risen by 9% since 2023, but falling interest rates mean that mortgage payments are up by only 7%, compared with a 16% increase for market rents. Our numbers showed that renting was cheaper than buying for more than two-thirds of Americans in 2023. Today it is roughly a 50-50 split.”

“Home values have fallen YoY in 25 markets — most in the South or West — restoring pockets of affordability lost in the early pandemic run-up in prices. Buyers are gaining some leverage across the country, with more markets approaching balance, and sellers cutting prices at record rates (27.4% in July, another record high in Zillow data dating back to 2018). Buyers are making gains in the battle for negotiating power, but they’re still largely losing the war on affordability.”

“household income now required to afford the typical starter home is $70,164, up more than 100% from just $32,357 in 2019..”