Despite hopes for relief, affordability remains elusive.
The latest S&P/Case-Shiller Composite-20 Home Price Index posted its smallest year-over-year gain since 2023, suggesting some cooling. But the broader picture tells a tougher story:
🔹 Four cities still remain at all-time highs
🔹 Only two cities have seen prices fall vs. a year ago
🔹 To return to pre-pandemic levels, home prices would need to drop over 30% — the same magnitude of decline seen during the Great Financial Crisis
And that kind of drop would likely require a crisis-level event—something no one should be hoping for.
With home prices continuing to rise much faster than wages, the underlying issue remains: structural affordability. Unless there’s a major shift in housing supply, wage growth, or policy, the path to homeownership will stay steep for many.
