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Wages outpace home prices as inventory supports affordability
Home-price growth has slowed to 1.8% while wages are rising around 3.5%, aided by 1.56 million homes for sale and 4.6 months of supply.
HousingWire says the housing market is improving on affordability as home prices rise more slowly while wages gain faster. Its assessment points to annual home-price growth of 1.8%, compared with wage growth near 3.5%, which can help households’ purchasing power even when prices continue to move upward.
The outlet links the shift to inventory levels that are not as tight as headlines often imply. It cites 1.56 million homes available, equivalent to 4.6 months of supply, a balance it says can limit future price acceleration.
HousingWire also notes that home prices have historically rarely fallen meaningfully over long stretches, meaning affordability improves when price growth runs below inflation and wage growth. It argues this year’s pattern, with inflation described as higher than home-price growth, indicates price growth is “soft” relative to other costs.
Looking ahead, the outlet says inventory is still seasonal and could decline in coming months, but it views the current range as supportive. HousingWire references its 2025 forecast framework, saying home-price growth ended 2025 at 1.3% and remains somewhat below its earlier expectations, with wages continuing to outpace prices into 2026.