05/20/2026
New Metric Shows Housing Market Mismatch: More Homes Are for Sale, but Not at Prices Buyers Can Afford
New Listing-Income Alignment Score reveals households can access one-quarter fewer homes than in a balanced market
WASHINGTON (May 20, 2026) – Households today can access about one-quarter fewer homes than they could in a balanced market, according to a new joint report from the National Association of REALTORS® and Realtor.com®.
The report introduces the Listing-Income Alignment Score, a new metric that measures how well the distribution of home listings in a given market match the income distribution of local households. A score of 100% means listings are distributed relatively proportionally across all income levels. A lower score indicates that homes are skewed toward higher price points, often leaving fewer options for entry-level and middle-income buyers.
In March 2026, the Listing-Income Alignment Score reached 74.9% nationally, up from 66.7% a year earlier. However, both figures remain below the pre-pandemic baseline of 84.4%.
“Housing supply is growing and affordability is improving. However, the U.S. housing market continues to face a structural mismatch between the homes available for sale and what buyers can afford,” said NAR Principal Economist and Director of Real Estate Research Nadia Evangelou. “Too much of the inventory available today remains concentrated at higher price points, leaving a shortage of options for entry-level and middle-income buyers. This is preventing home sales from reaching pre-pandemic levels.”
The mismatch is most pronounced among middle-income households who can only access about 23% of listings nationwide. In a balanced market, middle-income households—who earn approximately $75,000 per year—can access 44% of listings. To achieve a balanced market, the country needs roughly 311,000 more listings priced under $261,000—the ceiling of listing prices accessible to middle-income households.
“The improvement in our Listing-Income Alignment Score over the past year is encouraging, but the data makes clear that more inventory alone won’t be enough to unlock the housing market,” said Danielle Hale, Chief Economist at Realtor.com®. “A true recovery requires homes at the right price points. Until the supply of entry-level and middle-market homes grows to meet demand, many buyers will continue to find the market out of reach despite headline improvements in affordability and inventory.”
Among the 100 largest metro areas, the most aligned markets are concentrated in the Midwest, where home prices remain more closely tied to local incomes. The five most aligned markets include:
• Toledo, Ohio (107.4%)
• St. Louis, Mo. (106.0%)
• Akron, Ohio (105.0%)
• Pittsburgh, Pa. (102.6%)
• Detroit, Mich. (102.4%)
The five metros with the most constrained markets include:
• Los Angeles, Calif. (39.4%)
• San Diego, Calif. (45.0%)
• Oxnard, Calif. (46.8%)
• Providence, R.I. (50.5%)
• Boise City, Idaho (53.2%)
Nearly all major markets showed improvement over the past year, with 99 of the 100 largest metros recording gains or remaining flat. Madison, Wis., was the only major metro to see alignment decline over the past year, falling almost eight percentage points to 63%. The largest gains came from markets that experienced the fastest price appreciation during the pandemic housing boom, including:
• Lakeland, Fla. (+18.3 percentage points)
• McAllen, Texas (+14.7 percentage points)
• Las Vegas, Nev. (+14.0 percentage points)
• New Orleans, La. (+13.2 percentage points)
• Cape Coral-Fort Myers, Fla. (+13.0 percentage points)
https://www.nar.realtor/magazine/real-estate-news/inventory-is-finally-rising-so-why-arent-buyers-happier
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