US housing markets see 11% annual improvement in affordability in February 2026

12 articles · Updated · Mortgage Professional · Apr 28

First American’s Real House Price Index showed all top 100 markets posted year-over-year gains, with Georgia leading state-level improvements and Cape Coral topping metro areas at 16%.
The gains were driven by lower mortgage rates, rising incomes, and flattening or dipping home prices, resulting in a 12.6% increase in house-buying power and a 3.6% rise in median household income.
Despite improved affordability, only 13% of homeowners in a Citizens survey felt buying a home was achievable, with many preferring renovation, reflecting persistent challenges from elevated rates and limited inventory.

If housing affordability is up 11%, why do only 13% of homeowners feel they can buy a new home?

With a 4 million home shortfall, can lower mortgage rates alone ever truly solve the affordability problem?

Are rising insurance and property taxes creating a new, hidden affordability crisis for homeowners?

Is the 'renovate, don't relocate' trend permanently altering the US housing market's future?

Why are Sun Belt housing markets cooling while inventory in the Northeast and Midwest remains so tight?