Market Report: Where Affordability Is Having the Greatest Impact

Buying power is growing

Stat: Buying power is now at its highest level since March 2022

Zillow economists found that the median-income U.S. household can now afford a $331,483 home with a 20% down payment. That’s $30,000 more than a year ago. 

The shift is driven largely by lowering mortgage rates, but wage growth is also outpacing value growth. Those lower rates combined with flat home values that have helped improve buying power also translates to an average mortgage payment that’s about 8% lower than a year ago.

“A $30,000 gain in buying power is definitely meaningful for households who’ve been stretched thin by high rates. It can mean the difference between settling versus choosing,” says Zillow Senior Economist Kara Ng. “ Affordability isn’t fully healed, but the direction is encouraging. And that shift in momentum could make this spring feel very different from last year.”

Takeaway: When mortgage rates fall, the same monthly payment can cover a higher-priced home — so buyers suddenly have more options that are realistic — even if prices haven’t dropped much.

Consider using this window of stronger buying power to re‑engage “someday” buyers and move them into active search mode over the next 60–90 days.

Many top buyer markets are in the Midwest and Sun Belt

Stat: Eight of the 10 best markets for 2026 buyers are in the Midwest or Sun Belt

Zillow economists ranked the top 50 metros on a combination of factors to find places where buyers are more likely to find a mix of opportunity and sustainability — not just lower prices, but a friendlier buying experience overall. These markets share three attributes:

• Home values are cooling right now but expected to rise
• A typical mortgage payment (assuming 20% down) eats up a smaller share of local income
• Buyer competition is lower

There are commonalities here: Buyers are finally getting some breathing room without sacrificing long‑term upside. The markets on this list benefit from steady local economies, more new construction, and relatively tame price run‑ups — characteristics that have helped keep monthly payments more manageable. Inventory isn’t overflowing, but buyers get enough options to compare, negotiate, and still expect modest appreciation ahead.

Zillow’s most buyer-friendly markets of 2026

Indianapolis
Atlanta
Charlotte
Jacksonville
Oklahoma City
Memphis
Detroit
Miami
Tampa
Pittsburgh

These markets prove that buyer‑friendly conditions aren’t a fantasy. Similar pockets may be emerging in your own backyard.

Takeaway: Identify neighborhoods in your market with more listings, longer days on market and regular price cuts, then brand and market them as your local “best bets” for 2026 buyers.

There’s little downside to starting search early

While median age of inventory typically peaks in January, last month it spiked to the highest rate since 2020. 

“Home shopping this time of year is a lot like shopping for clothes between seasons,” said Zillow Senior Economist Kara Ng. “You’re mostly looking at the sizes and styles that didn’t sell last year. It may take a little more digging to find the right fit, but if you do, it’s more likely to come at a discount. And if nothing works, the new season of listings is right around the corner.”

Takeaway: Using slow season inventory could be another way to warm up cold leads. Consider offering to set up a low-pressure search focused on homes that have been listed 60–90+ days. These sellers may be more open to price or repair negotiations. If nothing fits, your buyers are already prepped for spring.