Realtor.com: Homebuyers Need to Earn 70% More Today Than in 2019

(Image courtesy of Curtis Adams/pexels.com)

Realtor.com, Santa Clara, Calif., released its April Housing Trends report, finding that a U.S. household now needs to earn $114,000 to afford a median-priced home. That’s up 70.1% from $67,000 in pre-pandemic 2019.

The national median list price for April was $431,250, only up 0.3% from April 2024. But, the price per square foot was up 1.1% year-over-year.

Since April 2019, the typical list price has grown nearly 37% and price per square foot is up 54%. However, those metrics have been closer to flat over the past year.

And, 18% of listings in April saw price reductions, the highest share for any April since at least 2016, the report noted.

“Even with today’s affordability hurdles, meaningful changes in the market could give buyers a better shot at finding a home,” said Danielle Hale, Chief Economist at Realtor.com. “The number of homes for sale is rising in many markets, giving shoppers more choices than they’ve had in years. Sellers are becoming more flexible on pricing, underscored by the price reductions we’re seeing, and while higher mortgage rates are certainly weighing on demand, the silver lining is that the market is starting to rebalance. This could create opportunities for buyers who are prepared.”

The inventory of homes for sale was up 30.6% year-over-year in April, hitting a new post-pandemic high. However, active inventory is still 16.3% below pre-pandemic levels.

The total number of unsold homes–including those currently under contract–was up 19.8% annually. Pending home sales fell 3.2%, and newly listed homes were up 9.2%.

Homes spent a median of 50 days on the market, up by four days from April 2024.