If you've been sitting on the sidelines waiting for housing to become more affordable, you're not alone. Millions of potential buyers have been priced out of the market over the past few years, watching as home prices climbed while wages struggled to keep pace. The big question everyone's asking: when does this get better?
The good news? There are real signs that affordability is starting to shift. The not-so-great news? It's happening slower than most people would like, and the path forward isn't perfectly straight. Let's break down what better affordability actually looks like and when you might see it in your market.
What Does "Better Affordability" Actually Mean?
Better affordability doesn't necessarily mean home prices crash. It means the relationship between incomes, interest rates, and home prices starts working in buyers' favor again. You'll know things are improving when:
Inventory starts building up. Right now, many markets still don't have enough homes for sale. When you see listings sitting longer and more choices available, that's your first signal. Buyers gain negotiating power when they're not competing against ten other offers on every decent property.
Price growth slows or flattens. Homes don't need to lose value for affordability to improve. If prices stay steady while wages continue rising, that gap closes over time. Some markets might see slight price drops, but in most places, you're looking at stabilization rather than dramatic declines.
Interest rates come down from their peaks. This is huge. Even a one-point drop in mortgage rates can save buyers hundreds per month. The Federal Reserve has already started cutting rates, though mortgage rates don't always follow immediately. As rates drift lower over the next year or two, monthly payments become more manageable for the same home price.
Wage growth continues outpacing inflation. This has actually been happening recently. When paychecks grow faster than the cost of living, people can afford more house without prices changing at all. This quiet improvement in affordability often goes unnoticed, but it matters tremendously.
The Timeline: When Will Things Actually Improve?
Most housing economists expect meaningful affordability improvements by late 2025 and into 2026. That's when several factors should align: mortgage rates settling into the 5-6% range, inventory continuing to grow as more homeowners feel comfortable selling, and wage growth maintaining its recent pace.
Some markets will see relief sooner than others. Areas that saw the most extreme price growth during the pandemic years will likely take longer to become affordable again. Meanwhile, markets that stayed relatively steady might already be approaching reasonable affordability levels.
"We're overdue for affordable real estate options that work for everyday families," says Mike Oddo, CEO of HouseJet. "The market went through an unprecedented period of rapid appreciation, and now we're in the adjustment phase. As homes become more affordable, we'll see a fundamentally different market—one with more first-time buyers, more mobility for families who've been stuck in starter homes, and more opportunity for people to build wealth through homeownership. That's when the market becomes healthy again, not just for investors or those with significant capital, but for regular people working regular jobs."
How Many More Buyers Will Enter the Market?
The potential is staggering. Research suggests that for every one-point drop in mortgage rates, roughly 5 million additional households become qualified buyers. That's not a small number—it's transformative for the market.
When affordability improves enough that monthly payments drop by just 15-20%, entire generations of buyers can participate again. The millennial buyers who gave up in 2022 and 2023 will return. Gen Z buyers who've been living with roommates or parents will start looking. Move-up buyers stuck in homes they've outgrown will finally list their properties, which creates inventory for everyone else.
This cascading effect is what makes improved affordability so powerful. It's not just about individual buyers affording homes—it's about unlocking the entire market so people can move when it makes sense for their lives.
Why You Shouldn't Wait If It Makes Sense Now
Here's something important to remember: trying to time the market perfectly usually backfires. While affordability will likely improve over the next year or two, it's not improving for everyone at the same rate.
HouseJet's recommendation: If your life circumstances say it's time to move—you got a new job, your family's growing, you're relocating for better opportunities—don't put your life on hold waiting for theoretical perfect conditions. Real estate remains more affordable than many people realize when you look at the full picture: low unemployment, strong wage growth, and increasing inventory all work in your favor right now. The buyers who win are the ones who make informed decisions based on their actual needs, not headlines about where the market might be in six months.
The market is shifting. Affordability is improving, gradually but genuinely. Whether you jump in now or wait depends on your specific situation, not what some prediction says might happen nationally. The families building their futures aren't waiting for perfect—they're moving when it makes sense, and finding ways to make it work.
