For the past few years, many buyers have felt stuck. Home prices jumped, mortgage rates climbed, and monthly payments became harder to manage. A lot of people who wanted to buy were forced to wait, hoping the numbers would start to make more sense again.
Now, something important is happening.
In many markets, the math behind buying a home is slowly improving. That doesn’t mean homes are suddenly cheap, and it doesn’t mean every buyer will qualify tomorrow. But it does mean the pressure is easing in ways that matter. Monthly payments are becoming a little more manageable, and for some buyers, the door to homeownership is starting to open again.
Let’s talk about what “affordable” really means, what’s changing in the market, and how buyers can decide if now is the right time for them to make a move.
When people talk about affordability, they often think only about the home’s price. But the real cost of owning a home is bigger than that. Your monthly housing cost usually includes:
Your mortgage payment (principal and interest)
Property taxes
Homeowner’s insurance
Sometimes HOA fees
Basic maintenance and repairs
A home is generally considered “affordable” when your total housing costs take up a reasonable share of your income. Many financial experts use a simple rule of thumb: housing should take about 30% or less of your monthly income.
When that number climbs higher, life can start to feel tight. There’s less room for savings, emergencies, travel, or even simple fun. Over the past few years, many buyers saw that percentage jump well above comfortable levels, which is why so many people hit pause on buying.
To understand why things are improving now, it helps to look at what made buying so tough in the first place.
In many areas, prices went up faster than incomes. That meant even buyers with good jobs and solid savings felt priced out. Each year, the same type of home seemed to cost more, and that pushed monthly payments higher and higher.
Higher interest rates don’t just change the total amount you pay over time—they change your monthly payment in a big way. Even a small rate increase can add hundreds of dollars to a payment, depending on the loan size. For many buyers, this was the final straw that made the numbers stop working.
At the same time, people were paying more for groceries, gas, childcare, and just about everything else. So even if someone technically qualified for a mortgage, it didn’t always feel comfortable or safe to take on that payment.
All of this combined to make affordability feel like a moving target that kept drifting farther away.
The market doesn’t usually flip overnight. Instead, it shifts slowly. Right now, several trends are lining up in a way that helps buyers.
As mortgage rates move around and price growth cools in many markets, the typical monthly payment for a home is not rising as fast as it used to. In some places, it’s even coming down compared to last year.
That doesn’t mean payments are low—but it does mean they’re becoming more manageable for more people.
Nationally, home prices haven’t crashed. But in many areas, they’re no longer jumping at the same speed they did before. Slower price growth helps buyers in two ways:
It gives them more time to save
It makes budgeting and planning more predictable
When prices grow at a calmer pace, buyers can make decisions without feeling like they’re racing a clock every weekend.
In many industries, wages have been rising. When incomes grow faster than home prices, buying power improves. Even if mortgage rates don’t drop dramatically, higher income can help balance out the equation.
This is one of the quiet reasons affordability can improve without a big headline change in prices or rates.
Real estate is local. Always.
Two buyers with the same income can have very different experiences depending on where they’re shopping. Some markets are seeing faster improvements in affordability, while others are still tight because of:
Low inventory
High demand
Local job growth
Property taxes and insurance costs
Desirable school districts or transit access
In some areas, buyers are starting to see more breathing room. In others, it’s still competitive, but not quite as intense as before. This is why local guidance matters so much. The national headlines don’t always match what’s happening on your street.
If you’ve been waiting on the sidelines, this shift is worth paying attention to—but it doesn’t mean you should rush. Instead, think about it as a chance to recheck the numbers with fresh eyes.
Here are a few smart steps:
Make sure you’re factoring in taxes, insurance, and maintenance. A home that seems affordable based on price alone can feel very different once you see the full monthly picture.
Talking to a lender can help you understand what you qualify for and what payment feels comfortable for your lifestyle—not just what you’re approved for on paper.
Are homes sitting longer? Are there more price adjustments? Are buyers getting more negotiating room? These local signs often matter more than national trends.
Buying a home isn’t about timing the market perfectly. It’s about finding a payment you can live with and a home that fits your life for years to come. If the numbers work and the home fits your plans, that matters more than guessing what next year will bring.
For many people, the affordability question isn’t just “Can I buy?”—it’s “Does buying make sense compared to renting?”
In some areas, rents have also risen a lot over the past few years. In others, they’ve started to level off. When you compare the two, remember:
Rent can go up every year
A fixed-rate mortgage payment stays more stable over time
Homeownership builds equity, not just monthly expenses
Buying isn’t right for everyone, especially if you plan to move soon or need flexibility. But as affordability improves, more people are finding that owning is starting to compete with renting again in a meaningful way.
When the market was at its hottest, buyers often had to:
Waive contingencies
Offer over asking price
Accept the home “as is”
Move very fast with little room to think
As affordability improves and the market balances out, some buyers are seeing more normal conditions return. That can mean:
Asking for repairs or credits
Negotiating price or closing costs
Having more time to make decisions
Choosing from more than one option
This doesn’t happen overnight, and it doesn’t happen everywhere at once—but it’s another reason why the buying experience is starting to feel less stressful in some markets.
It’s important to be honest: buying a home is still a big financial step. Even with improving affordability, many buyers will still need to:
Save carefully
Be realistic about location and home size
Make smart trade-offs
Plan their budget closely
“More affordable” doesn’t mean “cheap.” It means the gap between incomes and housing costs is starting to shrink instead of grow. That’s a meaningful shift, even if it doesn’t solve everything overnight.
If you’re thinking about buying in the near future, this is a good time to:
Revisit your numbers
Check your credit
Update your savings plan
Learn what’s happening in your local market
Talk through options and timelines
You don’t need to rush. But you also don’t need to assume homeownership is out of reach just because the past few years were tough.
Markets change. Conditions shift. And right now, the direction is starting to look more buyer-friendly than it did not long ago.
Affordability isn’t just a number on a chart. It’s about whether you can live comfortably, save for the future, and enjoy your life while owning a home. The recent changes in the market suggest that for more people, that balance is becoming possible again.
It won’t look the same in every city. It won’t happen at the same speed for everyone. But the trend matters—and it’s one worth paying attention to if buying a home is part of your plan.
To connect with me directly, contact me at 917-254-2103. For your FREE Home evaluation to learn the value of your home, your Homeowner Resource Guide, or your Home Buying/Down Payment Assistance Guide, use this link: https://bit.ly/45URvuV or text HomeswithJustin to 85377.
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To connect with me directly, contact me at 917-254-2103. For your FREE Home evaluation to learn the value of your home, your Homeowner Resource Guide, or your Home Buying/Down Payment Assistance Guide, use this link: https://bit.ly/45URvuV or text Ho
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Accessory Dwelling Units (ADUs) are small, self-contained living spaces on the same lot as a single-family home. In New York City, ADUs are gaining popularity as homeowners look for ways to increase income, provide flexible housing, and enhance prope