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Study Finds Only 1 in 8 Renters Can Afford a Median-Priced Home, Highlighting Housing Market Challenges
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Investopedia | Expert Financial Advice and Markets News
Key Takeaways Homeownership has become unaffordable for most U.S. renters, with only 1 in 8 able to afford a median-priced home.
While the cost gap between renting and buying is shrinking, a full return to pre-pandemic affordability levels could take years.
By this measure, just 1 in 8 renter households could afford a median-priced home in Q2 2025.
“When the rates went low, the prices went up, but when the rates went up, the prices did not come down in lockstep and instead remained sticky.
The Housing Market AheadWhile the future is uncertain, Deese expects home affordability to get better from here.