US: It’s Called a Buyer’s Market, But Most Buyers Still Can’t Afford It

On paper, many economists now describe the housing landscape as a “buyer’s market.” Inventory has improved from pandemic lows, sellers are more willing to negotiate, and list prices in some metros have stopped climbing in double digits. Yet for millions of households, especially first-time buyers, the numbers still don’t work—and the so‑called buyer’s market feels more like a locked door than an open house.

When the Data Says “Buyer’s Market” but Your Budget Says “No”

The classic definition of a buyer’s market is simple: more homes for sale than serious buyers, which should put downward pressure on prices and give purchasers the upper hand in negotiations. In reality, prices remain far above pre‑pandemic levels, and higher mortgage rates mean that even small houses generate big monthly payments. Studies show the income needed to afford a “typical” home has jumped by about 50 percent in just five years, while wages have lagged far behind. For many households, that gap easily reaches tens of thousands of dollars of additional annual income—money that simply doesn’t exist in their paycheck.

This is why surveys now find that well over half of Americans say buying a home in 2026 is unrealistic, even though headlines suggest conditions should be improving for buyers.

How We Got Here: Prices Up, Rates Up, Expectations Up

Three forces collided to create this paradox. First, a surge in home prices during and after the pandemic permanently reset the baseline; in many states, median prices are up 40–50 percent versus early 2020. Second, the jump in mortgage rates from the 3 percent range to closer to 6–7 percent multiplied the monthly cost of borrowing the same principal. Third, investors—ranging from small-scale landlords to large institutions—captured a rising share of purchases in recent years, particularly in starter-home segments.

Together, those factors transformed what might have been a textbook buyer’s market into something more stratified: well-capitalized buyers and high-income households can finally negotiate; everyone else is still shut out.

Why First-Time Buyers Feel the Squeeze the Most

First-time buyers face almost every disadvantage at once. They need to assemble a down payment from scratch, often while juggling rent, student loans, and higher everyday costs. Many lack the home equity that repeat buyers can roll into their next purchase, and they have less flexibility when bidding against cash-rich investors or move-up buyers. Surveys also show that younger buyers are more sensitive to financial shocks—job changes, health expenses, or childcare costs—which makes them wary of stretching for a mortgage, even if they technically qualify on paper.

Emotionally, this creates a disconnect: social media is full of key‑handover photos and renovation videos, but behind the scenes, a large share of would‑be buyers have quietly decided to stay put or delay owning for years.

Practical Moves When the “Buyer’s Market” Isn’t Yours

If you’re stuck in this paradox—hearing it’s a buyer’s market while feeling priced out—there are still strategic steps you can take:

• Redefine the target, not the dream. Consider smaller homes, older stock, or less “Instagrammable” locations that still fit your core needs like commute, schools, or safety.

• Broaden the search radius. Many of the most brutal affordability jumps are concentrated in trendy metros; expanding to adjacent counties or emerging suburbs can drastically change the math.

• Work backward from the monthly payment. Decide what you can safely afford each month after padding for maintenance, taxes, and insurance, then let that number dictate your price range, not the other way around.

• Use time to your advantage. If buying in 2026 remains unrealistic, treat this year as a “prep year”: focus on debt reduction, credit repair, and saving, so that if rates or prices break your way later, you’re ready to move quickly.

The Real Buyer’s Market Is Still Ahead

The uncomfortable truth is that the current buyer’s market mostly belongs to those who already hold wealth—high earners, repeat owners, and investors with dry powder. For everyone else, the real buyer’s market will only arrive when incomes catch up, or when a combination of softer prices and friendlier rates meaningfully closes today’s affordability gap.

Until then, treating housing as a multi‑year plan rather than a single season’s decision can help you stay strategic instead of discouraged. A buyer’s market on paper may be out of reach right now, but the planning you do in this phase is exactly what will let you seize the moment when the data finally lines up with your reality.

Source: Ziggurat Real Estate

Global Housing Crisis Deepens as Costs Surge 40%—What It Means for Buyers

The global housing market is sending a clear signal in 2026: affordability is no longer just a local issue—it has become a worldwide crisis. Recent reports from major publications such as The Guardian and The Wall Street Journal point to a striking trend—housing costs in many advanced economies have risen by as much as 40% over the past five years.

Although these headlines focus on markets like the United Kingdom, the United States, and parts of Europe, the effects are not confined to those regions. For Filipino homebuyers, overseas workers, and property investors, global housing pressures are increasingly influencing decisions closer to home.

Across developed markets, rising home prices, elevated borrowing costs, and persistent supply shortages have created a difficult environment for buyers. Even as interest rates begin to stabilize, affordability remains strained because property values have not significantly declined. This dynamic has broader implications. When property becomes too expensive in major global cities, capital tends to flow toward emerging markets. At the same time, overseas Filipino workers may feel financial pressure abroad, which can affect their ability or timing when investing in property in the Philippines. Investor behavior also shifts, with greater emphasis placed on value, yield, and long-term sustainability rather than speculative gains.

The roots of this affordability crisis are structural. Housing supply has been constrained for years due to underbuilding, regulatory barriers, and rising construction costs. Financing has also become more expensive compared to the ultra-low interest rate environment seen during the pandemic. Meanwhile, demand remains resilient, particularly from high-net-worth individuals who continue to acquire property in prime locations. Urban centers also continue to attract people due to economic opportunities, ensuring that demand does not easily fade even when affordability worsens.

For buyers in the Philippines, these global developments create a mix of challenges and opportunities. On one hand, Philippine real estate appears relatively more affordable compared to major global cities, which can attract returning overseas workers and investors looking for better value. Demand in key urban areas such as Metro Manila, Cebu, and Davao is therefore likely to remain stable, particularly in segments that cater to end-users and rental markets. On the other hand, affordability is still a concern locally. Construction costs are rising, borrowing is more expensive than it was a few years ago, and income growth does not always keep pace with property price increases.

These conditions are reshaping how people approach real estate decisions. Buyers are becoming more deliberate, placing greater importance on location, accessibility, and long-term usability rather than simply chasing well-known developments. Flexible payment terms are gaining importance, as developers compete to attract cautious buyers. Investors, meanwhile, are returning to fundamentals, asking whether a property can generate consistent rental income rather than relying solely on price appreciation.

At the same time, periods of affordability pressure often create openings for those who are prepared. Emerging locations tied to infrastructure development are becoming more attractive as alternatives to expensive central business districts. In segments where supply remains elevated, such as certain condominium markets, buyers may find increased room for negotiation. For those with a long-term perspective, real estate continues to serve as a hedge against inflation, particularly in a country like the Philippines where population growth and urbanization remain strong.

The broader message is clear. The global housing affordability crisis is not just a challenge—it is a shift in how real estate markets function. Property decisions today are no longer purely local. Global trends now influence pricing, demand, and investment flows in ways that were less pronounced in the past.

For Filipino buyers and investors, adapting to this reality is essential. Those who recognize how global forces shape the local market—and who respond with informed, strategic decisions—will be better positioned to find value and opportunity despite a more complex environment.

Source: Ziggurat Real Estate