For more than a decade, the national housing conversation has revolved around one stubborn fact: there simply are not enough homes for sale. This spring’s numbers, at first glance, seem to offer a ray of hope. Overall listings have climbed almost 20 percent compared with a year ago, according to a new joint study by the National Association of REALTORS® and realtor.com®. That sounds like relief—until you read the rest of the report.
The authors took a closer look at who, exactly, can afford the homes that just hit the market. Once they layered income and purchasing power onto the raw inventory totals, a different story emerged: lower- and middle-income households still face a steep shortage of listings they can realistically buy. In other words, supply is growing—but for many buyers, the shelves are still empty.
Where the Shortages Are Most Severe
- Households earning under $50,000. Buyers shopping below roughly $170,000 have fewer choices today than they did last spring. This group—representing about one-third of U.S. households—can afford only 8.7 percent of active listings. In a balanced market, they would be able to reach about 33 percent.
- Households earning $75,000–$100,000. Conditions have improved more for this “missing middle,” yet the gap remains wide. In 2019, nearly half of all listings were within their reach; today, just 21 percent make the cut, leaving them short roughly 400,000 homes priced under $255,000.
On the flip side, families earning $200,000 or more can shop 80 to 100 percent of the inventory nationwide. Affordability is no obstacle there, but the imbalance highlights how uneven the recovery really is.
The Geography of Progress (and Pain)
The Midwest and South are seeing the healthiest gains, partly because those regions continue to build—and build at price points more moderate buyers can manage. Metro areas such as Raleigh-Cary, Des Moines, Grand Rapids, Columbia (SC), and Columbus (OH) have made the biggest strides toward balance.
By contrast, large Western and coastal metros are still a tough slog. Los Angeles, Oxnard, San Diego, New York, and Spokane are now more than twenty percentage points below a “balanced” affordability mark. In L.A., even a household earning $200,000 can afford only three out of every ten listings.
Why Competition Remains Fierce
More listings on paper do not necessarily translate into easier negotiations. In many metros, the mismatch between demand and truly affordable supply means well-priced homes continue to attract multiple offers. Agents report ongoing bidding wars that push sale prices 10 to 20 percent above the list. Low rates of new construction, stubbornly high material costs, and labor shortages keep pressure on both prices and buyers’ patience.
Some shoppers are still waiving inspections and appraisal contingencies simply to stay in the game—decisions that carry their own risks if the house needs repairs or the appraisal comes in low.
What Buyers Can Do
- Secure financing first. A pre-approval (not just a pre-qualification) helps you act the moment a suitable property appears.
- Know your ceiling. Decide—before you bid—how high you can comfortably stretch, and resist the urge to blow past it in a frenzy.
- Be condition-ready. Have inspectors and contractors lined up so you can move fast on due diligence windows, even if you don’t waive them.
What Sellers Should Remember
Higher inventory does not erase the advantage of a well-presented, accurately priced home. Buyers still favor move-in-ready properties, especially those priced within FHA or conventional loan limits. Aligning price with condition—and being transparent in disclosures—reduces time on market and attracts stronger, cleaner offers.
Long-Term Solutions
The report closes with policy recommendations—zoning reform, streamlined permitting, expanded down-payment assistance, and incentives for entry-level construction among them. Those fixes take time. In the meantime, real estate professionals must guide clients through a market that remains anything but straightforward.
For lower- and middle-income households, the path to ownership still requires strategy, patience, and often creativity. For higher-income buyers, more choices are opening up—but that does little to solve the broader affordability challenge.
The bottom line? Yes, listings are up. But until construction, pricing, and wages find steadier ground, the inventory story will remain a tale of “too much for some, not nearly enough for others.” If you’re planning a purchase or a sale, knowledge, preparation, and realistic expectations are the keys to navigating this uneven landscape.
Need help reading your local market? Whether you’re worried about affordability, timing a sale, or strategizing an offer, a clear plan makes all the difference. Reach out any time; let’s put the current numbers to work for your next move.
