Homes have nearly doubled in price over the past decade - up 87%. But the boom may finally be cooling. Annual price growth slowed to just 0.5% in February 2026.
In 2019, a mortgage payment on the median home took 21% of median household income. Today it takes over 30%. Incomes would need to rise $50,000 just to match 2019's affordability.
Seventy percent of the top 100 metros are still classified as 'overvalued.' That's down from 83% a year ago - some progress, but not enough.
For the first time since the financial crisis, economists project that income growth will outpace home price growth. Wages are finally starting to catch up to home prices.
This won't reverse the decade of gains, but it offers relief.
Watch whether income growth actually outpaces home prices over the next two years and whether that ratio pushes more metros out of 'overvalued' territory.
