First-Time Homebuyer Affordability Improves

Homeownership has grown further out of reach for first-time buyers in recent years, with interest rates and home prices steadily creeping upward. However, in Q-3 2025, affordability for first-time homebuyers saw some improvement. According to NerdWallet’s Q-3 2025 First-Time Homebuyer Affordability Report, nationwide list prices fell by 2% in Q-3 to $432,600 on average, meaning that the typical monthly payment for first-time homebuyers is now approximately $3,300, assuming a 10% down payment.

Even in traditionally high-cost markets, home prices fell

Among the 50 most populous U.S. metros, prices actually fell the furthest in some of the traditionally most expensive housing markets. For instance, in Los Angeles and Boston, home prices fell by 7% quarter-over-quarter.

Meanwhile, Detroit and Pittsburgh saw prices rise by a respective 3% and 1% quarter-over-quarter. Other markets—including Grand Rapids, Mich.; Salt Lake City; Milwaukee; Providence, R.I.; and St. Louis—saw no change in home prices.

Added inventory helped bring housing costs down in Q-3

In Q-3 2025, nationwide housing inventory grew by 7% quarter-over-quarter, and compared with the same time last year, it grew by 21%. Some metros saw inventory expand even further. The Midwest saw housing inventory grow the most, including Columbus, where it increased by 25% quarter-over-quarter; Detroit, where it grew by 26% quarter-over-quarter; and Cincinnati and Indianapolis, where inventory increased by 27%.