The latest data shows that U.S. home affordability has reached its lowest point in 21 years. As someone who’s walked countless clients through every phase of buying, selling, and relocating—especially in Georgia and Alabama—I see firsthand how these numbers play out in real households. A central bank official recently pointed out that a persistent housing shortage is keeping both rents and home prices high, making the gap between what families earn and what they pay for housing wider than ever.
The homeownership affordability index is now at a 21-year low, and mortgage rates have climbed to nearly 7%. For families already navigating record-high prices, this makes the path to homeownership even steeper. Factors like restrictive zoning, expensive regulations, slow progress in new construction, years of underbuilding after the subprime crisis, and rising costs for building materials all continue to add pressure. There’s also a “lock-in effect”—with so many homeowners holding onto low-rate mortgages from previous years, fewer listings come onto the market, making it even harder for buyers to find options.
Policy changes may tighten things further, but it’s not all discouraging. A housing economist noted that buyers can still improve affordability by negotiating on asking prices, rather than focusing solely on interest rates. In my own work, I’ve found that a thoughtful, strategic approach—grounded in a deep understanding of both the market and the nuances of each client’s needs—can make a meaningful difference. Even in a challenging market, there are pathways forward for those who are well-prepared and well-advised.
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