Affordability Improves Slightly for Veteran Homebuyers, But Most Homes Are Still Out of Reach

Core Insights - Affordability for U.S. military veterans using VA loans has slightly improved, with 21.8% of home listings now affordable, compared to 20.2% in 2023 [1][2] - The share of affordable listings for veterans using conventional loans is 26.5%, up from 25.5% in 2023 [1][2] - The overall homebuying affordability has improved due to declining monthly housing payments and rising incomes [3] Affordability Trends - In 2015, veterans using VA loans could afford 53% of listings, but this has significantly decreased over the years [5][6] - The average mortgage rate was 6.81% in 2023, with a slight decrease to 6.66% currently, while the median U.S. sale price has seen a sub-2% year-over-year increase since April [5] - The median household income for veterans is estimated at $85,955 in 2023, reflecting a 10% increase since 2023 [5] Regional Insights - Detroit has the highest affordability for veterans using VA loans, with 60% of listings affordable, followed by San Antonio at 53.4% [9] - In contrast, California cities like San Jose and Los Angeles have less than 1% of listings affordable for veterans using VA loans [11] - The typical home price in Detroit is $215,000, while in San Jose, it is $1.6 million, highlighting the disparity in affordability [12] Loan Usage - 7.3% of mortgaged homebuyers used a VA loan in August, an increase from 6.5% a year ago, marking the highest share in six years [4] - VA loans are appealing for first-time veteran homebuyers due to no down payment requirement, but they come with higher monthly costs [4]