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

US: Why the Median Home Buyer Is Now 59

— And How Younger Buyers Can Still Get On the Property Ladder

The typical U.S. home buyer is now approaching retirement age, a striking sign of how much harder it has become to buy a home before mid‑life. Yet younger buyers still have paths onto the property ladder if they adapt their strategies to today’s realities rather than yesterday’s assumptions.

How Did the Median Buyer Reach 59?

Over the past 15 years, the median age of U.S. home buyers has climbed from around 39 to 59, based on industry and survey data. In the same datasets, the median age of first‑time buyers has risen to about 40, meaning that many people are not buying their first home until mid‑career.

Several forces pushed the typical buyer older:

• Affordability shock: Home prices surged after 2020 while interest rates rose from historic lows, pushing required incomes and deposits beyond what many younger households can manage.

• Investor and repeat‑buyer dominance: Older buyers, often with equity and cash, now account for a large share of purchases and can outbid younger, highly leveraged buyers.

• Supply constraints: Years of underbuilding mean too few homes relative to households, especially at entry‑level price points.

• Demographic shift: An aging population naturally raises the average age of buyers, but the speed of the change shows that market pressures, not just demographics, are at work.

The result is a market where older, equity‑rich purchasers can keep buying, while many younger households remain long‑term renters.

Why This Is a Problem for the “Dream”

A median buyer age of 59 undercuts the classic idea of buying in your 20s or early 30s, paying off the mortgage over decades, and entering retirement with a fully owned home. If people only buy in their 40s or 50s, they have fewer years to build equity, pay down debt, and benefit from long‑term appreciation.

The data reflect this shift:

• First‑time buyers now make up a historically low share of transactions, suggesting that many younger households are being shut out.

• Baby boomers have become the largest buying cohort, while millennials, despite being the largest generation, lag behind in ownership.

Over time, this risks a two‑tier system: older owners whose wealth was built through housing, and younger generations forced to save and invest without that traditional foundation.

What Younger Buyers Can Still Do

Younger households cannot control interest rates or national housing policy, but they can control strategy, timing, and expectations. Several practical moves can tilt the odds back in their favor:

1. Target price, not dream home

   • Start with a clear maximum monthly payment (including taxes and insurance), then work backward to a target price range.

   • Be open to smaller homes, condos, or older properties needing cosmetic updates rather than waiting for a “forever” home that may never be affordable.

2. Explore “stepping‑stone” markets

   • Consider first buying in more affordable neighborhoods, secondary cities, or commuter zones, then trading up later.

   • In some regions, smaller markets still offer prices and income ratios closer to what previous generations enjoyed, even if major metros do not.

3. Use creative ownership structures

   • Co‑buy with family or friends using clear legal agreements, splitting down payments and monthly costs.

   • Look into house hacking (renting a room or a separate unit) to offset mortgage payments where local rules allow.

4. Optimize the down payment

   • Combine employer benefits, local down‑payment assistance, and national programs to reduce the time needed to save.

   • Automate savings each month into a dedicated, safe account earmarked only for housing costs.

5. Prioritize debt and credit

   • Aggressively manage high‑interest debts to free up cash flow and improve your debt‑to‑income ratio.

   • Build a strong credit profile to qualify for better loan terms when an opportunity appears.

These strategies rarely deliver the ideal home in the ideal neighborhood on the first try, but they can move younger buyers from “permanent renter” to “owner of a first, imperfect asset.”

The Role of Policy and Innovation

Individual tactics help, but the age shift also reflects systemic issues that policy may need to address. Some proposals now circulating include:

• Tax‑advantaged “housing savings” accounts designed to help younger buyers accumulate down payments faster.

• Incentives to expand supply at the lower end of the market, including zoning reforms, subsidies for starter‑home construction, and faster approvals for infill development.

• Measures to reduce structural advantages for large investors in single‑family homes, so that more entry‑level stock remains accessible to owner‑occupiers.

For now, younger buyers face a tougher path than previous generations, but not an impossible one. By adjusting expectations, using every available financial tool, and staying alert to policy changes aimed at restoring balance, they can still get onto the property ladder—even in an era when the median buyer looks more like a pre‑retiree than a first‑time homeowner.

Source: Ziggurat Real Estate

If UK house prices are falling, why is it still so hard to sell?

Britain’s faith in the housing market has always been strong. Before Christmas, we polled thousands of Britons about their money habits, and more people said they viewed property as a better place to invest their money over the next ten years than shares, savings accounts, or any other asset class. But in parts of the UK, that faith is being tested.

The average British home trebled in value between 1995 and 2005, but growth has been much more modest since. In fact, when adjusted for inflation — which, for some reason, people are loath to do when discussing house prices — prices are about a tenth lower now than at their pre-financial-crisis peak.

When we talk about the recent stagnation in Britain’s housing market, two segments usually attract the most attention.

The first is the decline at the very expensive end, mostly in London. Data from Zoopla on prices per square foot, based on valuations and sales, show just how steep those falls have been. In 2015, buyers in Chelsea were paying £1,704 per square foot, a price inflated by foreign investment and a thriving City. By 2025, prices had fallen to £1,227 — a drop of a quarter in nominal terms, or roughly half in real terms once inflation is factored in.

The second is the decline of the British flat. A quadruple whammy — the leasehold scandal, post-Grenfell safety concerns, declining investor appetite, and a general desire for more space — has pushed flat prices below their 2022 levels. By some estimates, nearly four in ten new-build leasehold flats in London are being sold at a loss. Other property types, meanwhile, have pulled away.

But how does this affect the housing ladder?

Buying a starter home in Britain is still expensive. A report by Deloitte puts the cost of a new-build flat in Britain at €5,203 per square metre (about £424 per sq ft), the third-highest among 25 European nations. In Italy, for example, the cost is roughly half that. Relatively high interest rates also mean first-time buyers are spending a substantial portion of their income on mortgage payments.

Yet after years of tight lending restrictions, banks are once again offering increasingly generous terms to new buyers.

Last week, Melton Building Society announced a 100 per cent loan-to-value mortgage. And, as a share of wages, first homes are not dramatically more expensive than the long-term average.

But what happens when those first-time buyers want to move on?

The traditional progression from starter home to stepping stone to dream home remains deeply embedded in the British property psyche.

For baby boomers, climbing the property ladder was made easier by rapidly rising house prices. Imagine buying a flat in 1995 for £40,000 with a £10,000 deposit and selling it for £60,000 in 2000. Even excluding mortgage repayments, your £10,000 equity would have grown to £30,000. Yes, your dream home might have risen from £60,000 to £90,000 during that period — but you would now need only a 67 per cent mortgage to afford it.

Today, however, the first rung of the housing ladder offers far less lift. While today’s first-time buyers have an average household income of £61,000, those able to move a second, third, or fourth time typically earn around £93,000.

The cost of moving has also soared. Gordon Brown turned stamp duty into a major revenue-raiser in the 2000s, and George Osborne later increased it for high-value properties and introduced a second-home surcharge in 2016. The result is that moving home has become far less common. In the late 1990s, 7 per cent of homeowners moved each year; by 2024, that figure had fallen to just 3.9 per cent. Data from Savills suggest that while 35- to 44-year-olds made up 32 per cent of movers in the mid-2000s, that share has dropped to 24 per cent.

At the same time, under occupation — having more rooms than necessary — is increasing among older age groups, as would-be downsizers find it too expensive to move.

There has been a recent glimmer of hope that homeownership among young adults has begun to recover from its early-2010s lows. But increasingly, British homeowners are becoming stuck in the first homes they buy. The penny may have dropped that property is no longer a get-rich-quick scheme; more young people are turning to alternative investments to bridge the wealth gap instead of relying on house price growth.

Some first-time buyers are now going straight to their long-term homes, says Richard Donnell of Zoopla, sacrificing location and size in the process.

And so, as baby boomers in the southeast attempt to cash in on their multi-decade, seven-figure gains, they may find few buyers willing — or able — to trade up behind them.

Source: The Times