Housing affordability improved in all 50 states
First American reported that housing affordability at the end of 2025 is the strongest in three years. The First American Data & Analytics Real House Price Index (RHPI) shows a 9 percent improvement compared to a year ago. This is now the tenth consecutive month of affordability gains. Their data for the beginning of 2026 is not yet released but predits to be in the same direction.
“Affordability is improving across nearly the entire country and it’s improving faster in markets where supply has surged the most,” said Mark Fleming, chief economist for First America. “Where inventory rises — whether toward normal or significantly beyond it — price pressure eases and household income has a greater chance to catch up. If supply continues to expand or, as in some markets, remains elevated in 2026, nominal price growth should stay restrained, allowing affordability to continue its gradual recovery.”
