Affordable Home Listings Grow to Highest Level Since 2022

As buyers continue to pull back from the marketplace, listing prices continue to drop. According to housing marketing platform Zillow, about 439,000 homes were affordable to a median-income household in July 2025. This figure marks the highest share of affordable home listings since August 2022; it is also 20% higher than the same time one year ago.

A boost in inventory is the primary reason affordability is improving

As sellers see their listings linger on the market for longer, 27.4% have cut their list price as of July. However, sellers are just a small reason why affordability is improving. Inventory levels are likely the main driver for more affordable home listings. According to the report, there were more homes for sale in July than in any month since November 2019.

Still, affordability challenges in the housing market persist

Regardless of inventory growth, just 31.7% of listings in July were affordable to a median-income household. That’s roughly in line with last year’s 31.1%, and well below July 2020, when 53.7% of listings were considered affordable for the median-income household.

With these challenges in mind, antsy homebuyers say they're more likely to make comprises to purchase a home

• As Affordability Concerns Grow, Homebuyers Shift Their Focus: Homebuyers say they would accept smaller or modular homes if their need for wellness-driven design is met. 
• What Compromises Are Homebuyers Willing to Make In Order to Afford a Home?: In a recent survey, homebuyers say they would give up features, such as proximity to good schools, healthcare, and restaurants, in order to buy a house.