Despite More Inventory, Affordability Concerns Persist for First-Time Buyers

High mortgage rates and high home prices continue to challenge first-time homebuyers despite a recent rise in housing inventory. According to personal finance platform NerdWallet's Q-2 2025 First-time Homebuyer Affordability Report, listing prices grew by 5% in Q-2 2025 to $438,700 on average nationwide. With first-time homebuyer down payments typically at 9%, this increase puts the typical monthly payment for first-time homebuyers at $3,400.

Additionally, traditionally more affordable metros for first-time homebuyers saw some of the largest price increases during this time. For instance, in Buffalo, N.Y., prices grew by 14% in Q-2 2025, and in Cleveland, they grew by 12% during this time. Additionally, Baltimore, Providence, R.I., and Detroit also saw 10% price increases.

On average, the number of active listings rose 28% last quarter in the nation’s 50 largest metros, climbing in each one of the metros analyzed.

The number of homes for sale increased the most in San Jose, California (+80%); Seattle (+74%); Boston (+69%); San Francisco (+63%); Denver (+63%); Sacramento (+54%); and Washington, D.C. (+50%).