01/21/2026
More Buyers Catching A Break: Affordability Gains Reported Across Major Markets
Zillow’s latest housing market outlook projects that mortgage payments on a typical U.S. home will be affordable in 20 of the nation’s 50 largest metropolitan areas by the end of 2026, the highest number since 2022. This improvement in affordability is driven by a confluence of slow-growing home prices, declining mortgage rates, and rising incomes, which together are expected to ease cost burdens for prospective buyers.
Affordability in this context means that monthly mortgage payments — including principal, interest, taxes, and insurance — are forecast by Zillow to require no more than 30% of the median household income in these markets.
At the national level, Zillow estimates that mortgage costs now consume approximately 32.6% of median income, marking the most affordable conditions since August 2022, with a projected improvement to roughly 31.8% by year’s end.
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