Homebuyers Settle for Less Amid Housing Affordability Crisis

Aspiring U.S. homeowners continue to face challenges such as low housing inventory, high mortgage rates, and expensive real estate, with a recent survey showing that 64% are willing to compromise, including buying fixer-uppers or moving farther from family, in pursuit of homeownership. Despite these obstacles, homeownership remains a key component of the American dream, often prioritized above retirement or career success. Baby boomers are less likely to adjust their expectations compared to younger buyers, who are more open to making sacrifices for affordability. Experts predict U.S. home price growth will slow, averaging 3.4% in 2025 and 3.3% in 2026, a decrease from last year’s 5.8% increase, though forecasts vary significantly among analysts. Buyers are cautioned not to overextend financially amid these trends, leaving room in their budgets for emergencies. The mixed predictions and willingness to compromise underscore ongoing uncertainty and adaptation in the American housing market.