Three-Quarters of US Households Can't Afford a Median-Priced Home

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News Flash

American Dream or American Pipe Dream?

The math simply doesn't add up for many Americans. A staggering 76.4 million households — that's 57% of Americans — can't afford even a $300,000 home under standard mortgage criteria, according to fresh data from the National Association of Home Builders.

And that $300K price point? It's practically a unicorn in today's market.

With nationwide median new home prices sitting at $459,826, approximately three-quarters of all U.S. households are completely priced out. The reality gets even grimmer when you look at what's actually available — the median-priced home across America hit $440,000 in May.

To afford that median home, you'd need to fork over 44.6% of your household income. Just for housing. Financial experts traditionally recommend spending 30% on housing expenses, but that advice seems quaintly outdated in 2025.

Some markets are particularly brutal. Take the Seattle-Tacoma-Bellevue region — ranked the seventh least affordable major metro area in the country. Homebuyers there need to sacrifice a whopping 56.3% of their earnings just to afford a median-priced home. Even as demand cools in some regions, prices remain stubbornly stratospheric.

The crisis disproportionately impacts first-time homebuyers, pushing the typical age of homeownership ever higher. Housing remains the single largest expenditure for most families, making its affordability crisis a cornerstone of economic inequality.

The market has stabilized somewhat, with prices even dropping in certain cities. But most Americans remain unconvinced that now is the time to buy.

Trump's "Beautiful Bill" Hands Construction Industry a Tax Break Bonanza

The Senate passed the "One Big Beautiful Bill Act," delivering tax cuts aimed at boosting economic growth across industries.

The construction sector is celebrating these changes, with the Associated Builders and Contractors praising the bill's tax certainty as critical for business investment.

Key for construction workers is a provision that makes some overtime pay non-taxable. Workers will get a deduction for overtime compensation (up to $12,500 for singles, $25,000 for joint filers) through 2028.

The overtime deduction could prove particularly valuable in construction, where extended hours are common during peak building seasons.

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More You Should Know

• Compass Rejects NAR Policy: Compass CEO Robert Reffkin formally informed MLS and NAR leaders that the brokerage will not adhere to the Clear Cooperation Policy, choosing instead to set its listing submission requirements market-by-market. [Source]

• REITs Thrive, Healthcare Leads: Publicly traded US equity REITs raised nearly $11 billion in capital offerings by June 2025, with healthcare REITs, notably American Healthcare REIT, spearheading performance gains with a remarkable 150.14% one-year return. [Source]

• Affordable Housing Gap Widens: A new report reveals a national shortage of 7.1 million affordable homes for extremely low-income renters, leaving only 35 available for every 100 households and forcing many to spend over half their income on rent. [Source]

• Mortgage Rates Stable Mid-6s: Industry experts anticipate mortgage rates will largely remain within the 6.5%-7% range through July 2025, as the Federal Reserve is unlikely to cut rates amid inflation concerns and strong economic data. [Source]

• Mortgage Apps Rise as Rates Dip: Mortgage applications increased 2.7% overall, with refinance activity jumping 7% as the 30-year fixed mortgage rate declined to 6.79%, its lowest level since April. [Source]

• Brokerages Face Commission Lawsuit: A new buyer-focused class action lawsuit, filed on June 28 by Kevin Cwynar, alleges that The Real Brokerage and Realty ONE Group inflated home prices by incorporating commissions into listing prices without buyers' awareness or negotiation power. [Source]

• Construction Jobs See Mixed Signals: The construction industry added 15,000 net jobs in June 2025, contributing to a 1.5% year-over-year employment increase of 121,000 positions, even as job openings fell by 130,000 from the previous year to 245,000 by the end of May. [Source]

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