The 2025 Housing Affordability Crisis in Charts: What Changed and What Didn't

Core Insights - Housing affordability remained a significant issue in 2025, with high mortgage rates and peak prices continuing to challenge potential buyers [2][5] - Experts anticipate gradual improvements in affordability by 2026, driven by stable home prices, rising incomes, and decreasing mortgage rates [4][5] Housing Market Conditions - The housing market in 2025 faced affordability challenges, although there were signs of improvement as mortgage rates slightly declined and more listings became available [5] - Home sales remained low in 2025, but inventory levels increased by approximately 25% early in the year compared to the previous year, before slowing to a 10.9% year-over-year growth by October [6] Future Projections - Active listings are expected to rise in 2026, with projections indicating a yearly inventory growth of 10% to 15%, as lower mortgage rates attract more buyers and sellers [7] - The housing supply entering 2026 remains elevated due to previous inventory buildup, but the growth rate is expected to moderate, supporting a gradual normalization of market conditions [8]