Housing Affordability Shows Early Signs of Improvement as Market Moves Toward Balance
New Trends Suggest Buyers May Finally Have Room to Breathe After Years of Squeeze
Mortgage costs are easing a bit, incomes are inching up, and prices aren’t surging like they were. For buyers who have been watching from the sidelines, that’s a meaningful change.”
TYSONS, VA, UNITED STATES, February 2, 2026 /EINPresswire.com/ -- After years of elevated mortgage rates and rapid home price growth, prospective buyers are starting to see the first meaningful signs of improving affordability in the U.S. housing market. — Nick Ron
A House Buyers of America analysis finds that while the market isn’t “cheap” again, key affordability measures are moving in a more favorable direction, marking the start of what many experts describe as a gradual stabilization.
According to the latest data from Zillow cited in the House Buyers of America report, a broader definition of affordability — where monthly mortgage costs consume no more than 30% of median household income — is expected to be reached in 20 of the 50 largest U.S. metros by the end of 2026, the most since 2022. That shift reflects the combined impact of slowly moderating mortgage rates, subdued home price growth, and ongoing income gains.
“Affordability improvements are real, but they’re subtle,” said Nick Ron, Founder and CEO of House Buyers of America. “Mortgage costs are easing a bit, incomes are inching up, and prices aren’t surging like they were. For buyers who have been watching from the sidelines, that’s a meaningful change.”
House Buyers’ internal data also showed a shift in increased buyer traffic in many markets over the last half of December, which is usually a more subdued time for the market.
Affordability: Direction Over Destination
The shift doesn’t mean homes are suddenly affordable for every buyer. In fact, many markets, especially high-cost coastal cities, remain well above traditional affordability thresholds. But when mortgage payments are compared to household income across the nation, affordability levels are now better than they have been since mid-2022.
Economists continue to emphasize that true affordability depends on multiple factors. Mortgage rates, though lower than they were at 2023 peak levels, still sit much higher than pandemic lows, and home prices continue to outpace wage gains in many areas, keeping entry barriers high for many would-be buyers.
Nevertheless, industry data suggests that modest rate declines are helping ease monthly payment burdens, and improving inventory dynamics are giving buyers more negotiation power.
Practical Realities for Buyers and Sellers
For buyers, these market shifts translate into a nuanced opportunity: homes may still be pricey, but the financial math of buying — especially when mortgage payments become a smaller share of income — is improving in many parts of the country.
At the same time, sellers should recognize that today’s buyers are increasingly sensitive to monthly payment obligations, not just list prices — something that can shape pricing strategies and negotiation outcomes.
In some cases, homeowners who need or want to sell quickly are turning to alternative solutions such as cash sales to free up liquidity and take advantage of more favorable conditions elsewhere in the market. These options can help streamline transitions for sellers who prioritize certainty and speed.
About House Buyers of America
House Buyers of America is a leading national home-buying company helping homeowners sell with confidence through a simple, transparent, and hassle-free process. Founded in 2001 and operating in 44 states, the company blends decades of real estate expertise with technology-driven operations to deliver speed, certainty, and consistent outcomes. House Buyers of America has been recognized for its industry impact, including Ernst & Young Entrepreneur of the Year and inclusion on the Inc. 5000 list of America’s fastest-growing companies.
Nick Ron
House Buyers of America
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