First American's April data shows slowing prices and rising incomes boosting buyer power
Housing affordability in the United States improved 7% year over year in April, powered by a fundamental shift in market dynamics that goes well beyond mortgage rate moves or income gains alone, according to the latest Real House Price Index (RHPI) from First American Data & Analytics.
"Housing affordability continued to improve in April, but the story is no longer just about mortgage rates or rising incomes," said Mark Fleming, chief economist at First American.
"The housing market's gradual return to balance — with more homes for sale, less bidding competition and slower home price appreciation — is becoming an increasingly important driver of improving affordability."
The data lands as affordability gains have been spreading across the US for several consecutive months, with First American's December 2025 RHPI having already reported its strongest footing in nearly three years. April's figures confirm the momentum has held.
Supply shifts are rewriting the affordability math
The months' supply of existing homes — a gauge of how long it would take to clear current inventory at the prevailing sales pace — climbed from 3.5 months in April 2024 to 4.4 months by April 2026. That shift from the cycle low of just 1.8 months recorded in early 2022 has materially slowed price growth.
Annual nominal house price appreciation, which peaked near 20% during the pandemic surge, has decelerated to roughly zero.
Real house prices fell 7.2% between April 2025 and April 2026, while consumer house-buying power rose 8.1% over the same period.
Median household income has increased 3.7% since April 2025, and is up 51.1% over the past decade — a trend that has allowed buyers to absorb still-elevated costs.
Unadjusted house prices remain 65.4% above their 2006 boom peak, though real, buying-power-adjusted prices sit 9.3% below that same peak.
For brokers working with clients on the fence, the shift in balance is increasingly visible on the ground. As Matt Gouge, mortgage broker and founding partner at UMortgage, told Mortgage Professional America in January, buyers who once resisted the market are now rethinking their position on affordability and timing, a shift that mirrors what the RHPI data now confirms at a national level.
Local markets tell a divided story
The national headline masks sharp regional differences. Markets that accumulated the most inventory posted the steepest real price declines: Tampa, Fla. (-13.3% RHPI year over year), Seattle (-13.0%), Colorado Springs, Colo. (-12.5%), Austin, Texas (-12.0%), and Atlanta (-11.6%).
At the other end, constrained supply in Poughkeepsie, N.Y. (+8.1%) and Syracuse, N.Y. (+3.3%) has continued to support real price growth, limiting local affordability relief even as mortgage rates above 6.5% keep affordability pressure elevated across much of the country.
Among all states tracked in April 2026, none recorded a year-over-year increase in the RHPI. The five states with the greatest annual RHPI declines were Georgia (-11.6%), New Mexico (-11.5%), Washington (-11.3%), Florida (-10.9%), and New York (-10.9%).
Fleming cautioned that the trajectory is not guaranteed.
"The inventory gains that characterized the last few years have slowed, but the market is operating from a much healthier starting point than it was during the pandemic housing boom," he said.
"Whether affordability continues to improve will depend on how supply and demand evolve from here. For now, a more balanced housing market is helping keep house price growth in check — a necessary dynamic for affordability to continue improving."
The next RHPI release is scheduled for the week of July 27.
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