A
new report from Realtor.com and the National Association of Realtors reveals that households earning $100,000 or less can afford significantly fewer homes today compared to before the pandemic. Key findings include:

    * Families making $75,000 annually can only afford 21.2% of listings, resulting in a deficit of 416,000 homes.

    * Middle-income households earning $100,000 a year can afford just 37.1% of available listings, down from 64.7% before the pandemic.

    * Low-income families earning $50,000 a year have little chance of buying a home, as they can only afford 8.7% of listings.

    The report highlights that building modestly priced homes has become increasingly challenging due to rising costs and zoning regulations. However, reforms could help spur development and increase the supply of affordable housing.

    While some markets are showing improvement in terms of balance between supply and demand, many areas still have significant affordability gaps. To address this issue, governments, developers, and communities must work together to implement targeted plans that focus on adding affordable homes where demand is strongest and reforming zoning regulations to spur development.

    Reducing the square footage of new homes could also be a meaningful step toward easing the housing affordability gap for more buyers.