If you've been trying to buy a home this year, you're not imagining it. It really is getting harder. New numbers show that homebuyer affordability has gotten worse for five months in a row, and the gap between what people earn and what homes cost keeps growing.
Let's break down what's happening, why it's happening, and what you can actually do about it right now.
The Numbers Tell the Story
The National Association of Realtors tracks something called the Housing Affordability Index. It looks at home prices, mortgage rates, and the income a family needs to qualify for a loan. The latest report shows the median price of a single-family home is now $446,400. With mortgage rates averaging 6.57% on a 30-year loan, a family now needs to earn $109,152 a year just to qualify for that home (with a standard 20% down payment).
Back in January, that number was $93,552. That means in just six months, the income needed to buy a typical home jumped by more than $15,000. Home prices went up, and mortgage rates stayed stubbornly high — a tough combination for anyone trying to save up for a house.
At the same time, fewer people are signing contracts to buy homes. Pending home sales — homes under contract but not yet closed — dropped 5.4% in June, the biggest monthly drop of the year. Many buyers, especially first-time buyers, are simply waiting on the sidelines.
Why Is This Happening?
Part of the answer is simple: there aren't enough homes. Experts estimate the country is short more than 4 million homes. When there aren't enough homes for everyone who wants one, prices tend to stay high, even when fewer people can afford to buy.
Mortgage rates are the other piece of the puzzle. Rates recently hit their highest point in nearly a year. Even a small change in your mortgage rate can add hundreds of dollars to your monthly payment, which makes a big difference in whether you qualify for a loan.
Affordability Isn't the Same Everywhere
It's worth remembering that these national numbers are just an average. Affordability looks very different depending on where you live. In some parts of the Midwest and South, home prices remain far below the national median, and a household earning a moderate income can still qualify for a mortgage without much strain. In many coastal cities and popular metro areas, though, prices have climbed so high that even two full-time incomes can fall short of what's needed to qualify.
This is why it helps to look at local numbers, not just national headlines, when you're deciding whether now is the right time to buy. Your state or local housing finance agency can often tell you what's realistic in your specific area, along with any local grants or programs that might apply only to your city or county.
A New Law Aims to Help — But Not Right Away
On July 11, 2026, a new law called the 21st Century ROAD to Housing Act went into effect. It's a bipartisan bill with more than 50 provisions designed to boost the housing supply and make homes more affordable. It includes steps to encourage new construction, make it easier to get financing, and limit large investors from buying up single-family homes.
This is a meaningful step, but experts warn it won't fix things overnight. Building new homes takes time — permits, zoning approvals, and actual construction can take years. So while this law may help future buyers, it likely won't change much for people house-hunting this year.
You can read the details of the law and track its progress on Congress.gov, the official government website for U.S. legislation.
What You Can Do Right Now
Waiting for the market to change isn't your only option. There are real steps you can take today to make homeownership more within reach, even while prices and rates stay high.
1. Know the 30% rule. The U.S. Department of Housing and Urban Development (HUD) uses a simple guideline: your housing costs — including your mortgage, taxes, utilities, and insurance — shouldn't be more than 30% of your total income before taxes. This is a helpful way to figure out what you can truly afford, not just what a lender says you qualify for. You can learn more about affordable housing standards directly from HUD.gov.
2. Look into down payment assistance. Many people don't realize there are programs that help cover down payments and closing costs, especially for first-time buyers. HUD keeps a list of local homebuying programs by state, which you can search through on their official homebuying assistance page.
3. Check your credit score before you shop. Your credit score has a big effect on your mortgage rate. Buyers with lower credit scores often pay significantly higher rates than those with strong credit. Before you start house-hunting, it's worth checking your credit report for free. You're entitled to a free credit report each year through AnnualCreditReport.com, the official site authorized by federal law.
4. Shop around for your mortgage. Mortgage rates can vary quite a bit from lender to lender. Getting quotes from at least three or four lenders can help you find a better rate and save money over the life of your loan. The Consumer Financial Protection Bureau has a free, easy-to-follow guide on comparing loan offers at consumerfinance.gov.
5. Consider new construction. With builder confidence at its lowest point in over a decade, many homebuilders are cutting prices and offering incentives to attract buyers. This has created an opening in new construction that resale homes can't always match right now. It may be worth looking at new-build communities in your area, since builders may be more willing to negotiate on price or offer help with closing costs.
If Buying Isn't the Right Move Yet, Renting Assistance Can Help
For many families, buying a home right now simply isn't realistic yet — and that's okay. If you're looking for an affordable place to rent while you build savings and credit, Section 8 housing assistance can make a real difference. Our partner site, Section8Search.org, helps people find Section 8 housing options and understand how to apply for rental assistance in their area.
The Bottom Line
Home affordability is at a tough point right now, and it's not because you're doing anything wrong. Prices are high, interest rates are high, and the country simply doesn't have enough homes to go around. A new law may help in the coming years, but for now, the smartest thing you can do is focus on what's in your control: understanding your budget, checking your credit, shopping around for the best mortgage rate, and looking into every assistance program you qualify for.
Homeownership may take more patience than it used to. But with the right information and the right support, it's still possible to get there.
Sources: National Association of Realtors Housing Affordability Index, U.S. Department of Housing and Urban Development (HUD.gov), Congress.gov, Consumer Financial Protection Bureau (consumerfinance.gov), AnnualCreditReport.com.
