The national median home price stood at $395,000, while the income required to afford a median-priced home hit $90,100—underscoring the affordability challenge for many buyers.
“Much like the K-shaped trend seen in overall consumer spending—driven largely by higher income groups—lower-income potential homebuyers are facing challenges due to an uncertain job market, sluggish wage growth, and worsening financial conditions. This is leading to weaker demand for homes and downward pressure on prices,” said Dr. Selma Hepp, Cotality’s chief economist.
Regional divides widen as Northeast outperforms
While the national picture points to cooling, the Northeast continues to stand out. Connecticut and New Jersey led the country in annual price growth, with both states posting gains in the high single digits.
“Major Northeastern metro areas such as Boston, New York, and Philadelphia remain resilient thanks to sectors like finance, biotech, healthcare, and education. Strong and diversified local job markets continue to draw high-earning professionals and give them the income stability needed to purchase expensive homes,” Hepp said.
This resilience is not universal. Western states such as Alaska and Wyoming, which had previously lagged, posted year-over-year gains above 5%. However, at the metro level, the picture is more mixed. In September, 20% of the 411 US metropolitan areas tracked by Cotality saw annual price drops—the largest share of metros with declines since June 2023, when surging mortgage rates first cooled the market. Washington D.C. and Florida saw the steepest declines.