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U.S. Homebuyers’ Buying Power Climbs to Highest Since 2022, Zillow Says

Zillow sees more relief ahead if borrowing costs continue to fall.

Overview

  • A median-income household could afford a $331,483 home in January with 20% down, about $30,000 more than a year earlier.
  • The typical mortgage payment, excluding taxes and insurance, fell 8.4% year over year as average rates eased to roughly 6.1% from 6.96% in January 2025.
  • Roughly 82,300 additional homes are within reach versus last year, lifting affordable listings to about 447,000, or 40.3% of the market, with overall inventory up 6%.
  • The biggest gains in buying power occurred in expensive metros, led by San Jose (nearly $74,000), San Francisco ($56,115), Washington, D.C. ($48,881), San Diego ($46,506) and Boston ($46,390).
  • Markets with year-over-year value declines added the most affordable options, with Houston leading, followed by Phoenix, Dallas, Miami and Atlanta.