Homebuyer Power Climbs $30,302 to $331,483, Boosting Zillow Listings
Zillow reports that median-income U.S. households can afford homes priced at $331,483, a $30,302 year-over-year gain and the strongest buying power since March 2022. This shift boosted the affordable share of listings to 40.3% from 34.8% while inventory rose 6% and lower mortgage rates cut typical principal-and-interest payments by 8.4%.
1. Record Affordability Gains
Zillow data show median-income U.S. households can now afford homes priced at $331,483, up $30,302 year over year and marking the strongest buyer power since March 2022.
2. Listings and Inventory Growth
The surge in buying power translates to roughly 82,300 more listings affordable to median earners, raising the affordable share of for-sale homes to 40.3% from 34.8% and driving a 6% year-over-year increase in inventory in January.
3. Mortgage Rates and Payment Reduction
Average mortgage rates declined from 6.96% in January 2025 to 6.10% recently, leading to an 8.4% reduction in typical principal-and-interest payments for buyers putting 20% down and easing monthly cost burdens.
4. Market Outlook and Future Trends
Zillow forecasts that rates will drift lower through 2026, supporting a projected 4% rise in existing-home sales next year and potentially boosting traffic and engagement across its platform.