As Housing Inventory Improves, So Does Affordability: Insights from Elizabeth Ann Kline

If you’ve been keeping an eye on the housing market, you already know things have been changing fast. As a longtime REALTOR® and team leader based right here in Fairfax County, Virginia, I see firsthand how the real estate landscape is shifting in 2025. After years of rapid price growth and slim pickings, we’re finally seeing something encouraging: home affordability is getting better in many areas across the country.

National headlines only tell part of the story, though. Whether you’re buying, selling, or just dreaming of a move, you need to know how these changes affect you—right here in our community and across the nation. Let’s break down what’s really happening and what it means for your next move.

 

Understanding Today’s Real Estate Landscape

How Home Affordability Is Changing

Anyone who’s searched for a home lately knows how tough things have been. Prices shot up, inventory dried up, and for a while it seemed like owning a home was slipping out of reach for many hardworking families. But things are shifting, and 2025 is bringing a breath of fresh air. What’s the big difference? More homes are coming on the market.

This isn’t just good news for buyers. When there’s more inventory, sellers have to be realistic about pricing, and buyers have a better shot at finding a home that fits their needs and budget. I’ve spent years helping clients navigate both red-hot seller’s markets and the quieter times, and trust me, a balanced market is a win-win for everyone. It’s like opening the windows on the first warm spring day—you can feel the relief in the air.

That said, not every city or neighborhood is experiencing these improvements at the same pace. Real estate has always been local, and that’s especially true right now.

 

Why Inventory Matters More Than Ever

Inventory simply means the number of homes for sale. When supply rises and demand holds steady, prices tend to stabilize. This year, many cities are seeing more “For Sale” signs than we’ve had in a long time. That’s great news for buyers who have felt boxed out by bidding wars and sky-high prices.

Right here in Springfield, Burke, and across Fairfax County, I’m seeing more listings come up each week. Buyers now have real choices. Open houses are busy, but not frantic, and clients can take a breath before making one of the biggest decisions of their lives.

It’s not just about price, either. When there are more homes on the market, buyers can negotiate on repairs, take the time to do inspections, and avoid some of the panic-buying that happened in 2021 and 2022. The pace is still quick, but it feels much more reasonable, and both buyers and sellers are finding ways to win.

 

What’s Happening Nationally with Housing Affordability?

A Closer Look at First American’s Latest Report

According to a brand-new report from First American, housing affordability jumped 4.4% across the country in April. That’s one of the biggest improvements we’ve seen in years. And for those of us working with clients every day, I can tell you those numbers are more than just statistics. They reflect the reality we’re seeing at kitchen tables and open houses all over Northern Virginia.

The key driver? Once again, it’s inventory. When more homes are available, price growth starts to level out. For anyone who’s been waiting on the sidelines, this is the kind of change that can finally open doors—literally and figuratively.

Still, even with these improvements, the market is always changing. Affordability is affected by everything from interest rates to local job growth, and it’s never just one thing. That’s why having an experienced local REALTOR® matters so much right now. I love diving into the data, but I’m even more passionate about helping you interpret those numbers in the context of your own goals, dreams, and neighborhood.

 

What’s Different in 2025?

Let’s highlight what’s changed so far this year:

• In 43 out of the 50 biggest U.S. cities, home affordability got better in April.

• Cities with more inventory think Miami, Orlando, and Austin—have seen the most improvement. In these places, there are enough homes for sale that buyers have real negotiating power.

• On the other hand, places like Buffalo, Cincinnati, and Hartford still have less than two months of inventory. It’s much tougher there, and affordability hasn’t improved as much.

• Mortgage rates are still a wild card. They’ve stayed mostly below 7%, but even a small jump or drop can make a big difference for buyers.

Here in Northern Virginia, I’m seeing many of the same trends play out. Some neighborhoods are balancing out, while others are still very competitive. It’s crucial to know what’s happening in your specific area, not just in the national headlines.

 

Regional Differences: Who’s Winning, Who’s Waiting?

Where Are Buyers Getting a Break?

Let’s talk about the cities that are leading the way on affordability. Miami, Orlando, and Austin now have over five months’ worth of homes for sale. In real estate, that usually signals a balanced market great news for buyers!

Why is this happening? It’s a mix of new construction, more homeowners deciding to list, and even some investors stepping back for now. If you’re house hunting in these cities, you’ll find less competition, more time to think, and a better chance to negotiate.

But not every city is seeing these benefits. In Buffalo, Cincinnati, and Hartford, there just aren’t enough homes to go around. When there’s less than two months’ supply, buyers still face bidding wars and tough competition. If you’re looking in these areas, be ready to move quickly and work with an agent who knows how to get creative and aggressive without overpaying.

I’ve helped clients through both hot and balanced markets, and my best advice is to pay close attention to the local trends and move quickly when you find the right fit.

 

Where Inventory Is Still Tight

Let’s be honest not every region is seeing relief. The Midwest and Northeast, in particular, still have tight inventory and affordability challenges. Homes move fast, prices are sticky, and bidding wars are common. Sometimes, it’s because there isn’t enough new construction, or maybe folks are just staying put longer in certain neighborhoods.

If you’re a buyer in these areas, it’s essential to have your pre-approval in hand, make strong offers, and work with a real estate professional who knows how to compete in these challenging markets. For sellers, it’s still a great time to list, but it pays to present your home well and price it right to attract the best buyers.