12 Signs Housing Is Still Affordable in Today’s Market
The headlines keep saying housing is unaffordable, but that’s not exactly true. The problem isn’t just the market, it’s the expectations.
Bigger homes, luxury finishes, and zero compromises have quietly become the new “standard,” and that’s what makes housing affordability feel out of reach.
Here are the reasons today’s market isn’t unique, and why housing affordability has more to do with expectations than pure economics.
Affordability looks different for everyone. This post highlights common trends, behaviors, and overlooked factors, not universal truths. Every buyer’s situation is unique.
Table of Contents
The Housing Panic Isn’t New
A recent Pew survey says 69% of Americans are very worried about housing costs. But people said the same thing decades ago, even when prices were a fraction of today’s.
The headlines may be louder now, but the anxiety isn’t new. People have always felt priced out, until they adjusted, planned, and bought anyway.
Housing fear is often driven more by media and mindset than market conditions.
Why Listen To Dad Is FIRE?
I’ve been a real estate investor for over 20 years, buying homes across multiple market cycles, even when I was only making $25K to $50K a year.
I bought my first properties in my early 20s with just $800 out of pocket, when rates were in the 7% range and everyone was saying housing was unaffordable.
If I had listened to the noise, I wouldn’t have become a liquid millionaire by 38 or retired by 42.
Housing has always been a long-term game, but most people treat it like a short-term gamble. My take comes from decades of experience, not headlines or hype.
Related: How To Buy a House with Little or No Money Down (I Have Done It)
People Are Not Foreclosing En Masse
If housing were truly unaffordable, people would be losing their homes left and right, but they’re not. Foreclosure rates remain low, and lenders are still approving buyers at all income levels.
Affordability isn’t about wishing prices were lower, it’s about the ability to actually pay. Millions still can, and they are. That’s not a broken market, it’s proof people are making it work.
Expectations Are Out of Control
The average home size used to be under 1,000 square feet. Now it’s well over 2,500 square feet, and buyers still say it’s not enough. Half of new homes today have four or more bedrooms, and a third come with a three-car garage.
People aren’t just chasing houses, they’re chasing status. The affordability issue isn’t just about price, it’s about wanting luxury as the starting point. That shift in mindset is making basic homes seem “unacceptable.”
Related: Why I Believe a 15-Year Mortgage Makes More Financial Sense Than 30 Years (and Lived It)
Historical Perspective: Today’s Mortgage Rates Are Still Below Normal
People complain about 6–7% mortgage rates, but that’s historically normal. For decades, that was just the cost of borrowing and homes still sold. The problem is that everyone got used to 3% rates, which were never meant to last.
Today’s rates feel high only because people anchored to an artificial low. In reality, the current rates are average, and buying is still possible for those who budget accordingly.
Related Video: My Secret Way To Get A Really Low Interest Rate On Mortgage
People Refuse to Move Where They Can Afford
Housing has always involved trade-offs. In the past, if people couldn’t afford one city, they moved to another. Today, many refuse to leave high-cost areas, but still complain about prices.
Remote work makes relocation easier than ever, but people want big-city salaries with small-town housing costs. That’s not how affordability works. Choosing to stay put is a personal decision, not a housing crisis.
Housing Is a Long-Term Play
The word “mortgage” literally translates to “until death,” because homeownership was never meant to be a quick flip. Real estate has always been a long game, and those who stay in it tend to win.
Markets rise and fall, but over time, housing consistently builds wealth. The ones trying to time the market often get stuck renting, while steady buyers build equity without the drama.
Related: I Retired Young: Here’s Why I Love Investing In Real Estate (Even In Today’s Market)
Starter Homes Aren’t Starter Homes Anymore
A starter home used to mean small, outdated, and affordable, something you fixed up over time. Today, buyers expect move-in-ready spaces with granite countertops, open layouts, and zero flaws.
No one is forcing people to skip modest homes, but many choose to stretch for upgraded features. That’s not a market issue, it’s a mindset problem. Real affordability starts with realistic expectations.
FOMO Is Driving the “Crisis”
The media keeps pushing the idea that time is running out, that if you don’t buy now, you’ll never get in. That kind of FOMO (fear of missing out) drives buyers into bidding wars, overpaying for homes they can’t really afford.
If you follow DadisFIRE on Twitter, you know I often say, “Housing is affordable. The house you want isn’t”.
Real estate isn’t going anywhere. There will always be homes for sale, but only buyers who tune out the noise and focus on their finances will avoid the FOMO trap.
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Housing Is an Investment, Not Just a Cost
People see mortgage payments and forget about equity. Unlike rent, a mortgage locks in your costs and builds long-term value. Over time, it’s one of the strongest inflation hedges available.
Yes, buying a home can feel expensive upfront, but it’s not wasted money. It’s an asset. Smart buyers focus on long-term gain, not short-term sticker shock.
Related: When Is The Best Time To Buy A House? A Real Estate Pro Answers.
Financial Literacy and Planning Make Housing Affordable
Affording a house isn’t just about income, it’s about how you manage money. People who budget, save, and plan often outpace those who earn more but spend carelessly.
Affordability is relative. Someone making less but managing well is often in a better position than someone with a big paycheck and no control. Those who understand their finances usually find a way in. Those who ignore the math stay stuck.
Related: Why Buying a House is Financially Better Than Renting (Includes Calculator)
Market Cycles Aren’t New, They’re Normal
People waiting for the “perfect” time to buy often wait forever. Interest rates rise and fall. Home prices fluctuate. But real estate has always rewarded those who are financially ready, not just market watchers.
If the numbers work, if you can afford the payment, have savings, and aren’t overextending, that’s your green light. Waiting for the stars to align is a losing game.
Related Video: Unpopular Opinion: 10 Reasons Why Housing Is Actually Affordable
The Reality of Housing Affordability
Millions of homes are bought and sold every year. The market isn’t broken, expectations are. The problem isn’t that homes are unaffordable. It’s that many people want more than they can reasonably pay for.
The buyers who adjust, plan, and think long-term will always find a way.
Housing is affordable, because it’s being afforded every single day.
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