Home Affordability Improves as Inventory Rises and Prices Climb, CoStar Group Reports

Reuters
01/22
Home Affordability Improves as Inventory Rises and Prices Climb, CoStar Group Reports

CoStar Group Inc.'s Homes.com has released a new report analyzing U.S. home price trends through December 2025, highlighting continued national home price appreciation alongside the first year-over-year improvement in affordability since 2020. The nationwide median home price rose by 1.1%, but housing became more affordable due to higher income growth and lower mortgage interest rates. The report notes a 17% increase in the number of homes available for purchase during 2025, while the earnings required to buy the median home dropped by more than 9%. The Midwest region led in home price appreciation, with Saint Louis experiencing a 7.7% increase, followed by Pittsburgh, Cincinnati, Detroit, and Chicago. Conversely, several Texas markets, including Dallas-Fort Worth and Austin, saw home prices decline. Over 70% of nearly 1,000 tracked markets registered year-over-year price growth in December.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. CoStar Group Inc. published the original content used to generate this news brief via Business Wire (Ref. ID: 20260121689816) on January 21, 2026, and is solely responsible for the information contained therein.

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