Executive summary
This report examines housing affordability through Oct 2025, covering rent, mortgage rates, and home prices across 50 US metropolitan areas. Data is sourced from the Bureau of Labor Statistics, Census Bureau, and Freddie Mac.
Rental market trends
Rental inflation moderated in 2025 after several years of rapid increases. New multifamily construction increased supply in many metros, putting downward pressure on rents in Sun Belt cities. However, coastal markets remained tight. The BLS shelter index, which captures both rent and owners' equivalent rent, continued to contribute meaningfully to headline CPI even as market rents stabilized.
Home prices and mortgage rates
Mortgage rates fluctuated throughout 2025, influencing home purchase affordability. The Freddie Mac 30-year fixed rate remained elevated by historical standards. Home prices showed regional divergence: some Sun Belt markets saw price declines while Northeast and Midwest markets remained stable or increased. First-time homebuyer affordability remained a significant challenge nationally.
Regional affordability
Housing affordability varies dramatically by region. This report includes a metro-level breakdown showing the ratio of median home prices to median household incomes. Markets where this ratio exceeds 5.0 are considered severely unaffordable. The data is drawn from Census Bureau ACS estimates and Freddie Mac mortgage rate data.
Monthly data table
| Month | Housing CPI (% YoY) |
|---|---|
| Jan 25 | 4.2% |
| Feb 25 | 4.4% |
| Mar 25 | 4.3% |
| Apr 25 | 4.3% |
| May 25 | 4.8% |
| Jun 25 | 3.9% |
| Jul 25 | 4.4% |
| Aug 25 | 4.9% |
| Sep 25 | 4.4% |
| Oct 25 | 4.3% |
| Nov 25 | 4.7% |
| Dec 25 | 4.7% |
| Jan 26 | 4.3% |
| Feb 26 | 4.0% |
| Mar 26 | 4.3% |
| Apr 26 | 4.2% |
| May 26 | 4.3% |
| Jun 26 | 4.2% |
| Jul 26 | 3.7% |
Methodology
The Consumer Price Index measures the average change over time in prices paid by urban consumers for a market basket of goods and services. TALLY Insights presents this data in an accessible format. Full methodology details are available on our methodology page.