Middle-Income Buyers Squeezed by High Rates, Prices
Economic Pressures Impact Middle-Income Homebuyers Amid rising interest rates and escalating home prices, middle-income buyers find themselves caught in a vice that tightens each year. Homeownership is becoming increasingly elusive for this demographic, particularly those earning around $75,000 annually. 49% of Americans believe buying a home in 2025 is unrealistic , compounding the difficulties faced by this group. Their path to acquiring a home is obstructed by persistent economic pressures. Purchasing power continues to erode under fluctuating market conditions. This affects their ability to navigate housing financing in a market with heightened demand. In 2025, more than half of all Americans, including 46% of Generation X buyers, intend to purchase a home. However, middle-income buyers face significant demographic impacts. They once could afford up to 49% of available homes in 2019, but this is projected to drop to a mere 21% by 2025. This decline in affordability aligns with incr...