Is Now a Good Time to Buy a Home? (2025)
We track four key affordability and market indicators to give a data-driven answer. Updated monthly.
30-Year Rate
6.82%
vs 3.0% in 2021 — elevated
Payment-to-Income Ratio
28.4%
Historic avg: 22% — stretched
Price-to-Rent Ratio
19.2
Above 15 favors renting nationally
Months of Inventory
3.8 mo
Rising from 2.9 in 2023 — improving
YoY Home Price Change
+4.1%
Appreciation slowing from 2021 peaks
Pending Home Sales
+3.2%
MoM — buyer activity picking up
National verdict (2025): Affordability remains historically strained. The typical buyer now spends 28–30% of gross income on a mortgage payment vs. the historic norm of 20–22%. However, for buyers with strong financial foundations — 20%+ down, stable income, 3+ year horizon — buying in most markets still makes long-term sense. The worst time to buy was 2022; conditions have improved since.
Market Conditions by Metro Area
Price-to-rent ratio, affordability score, and buy/rent signal for the 20 largest US metros.
| Metro | Median Price | Price/Rent | Affordability | Signal |
|---|---|---|---|---|
| Atlanta, GA | $385,000 | 14.8 | Moderate | Buy |
| Austin, TX | $455,000 | 16.2 | Stretched | Neutral |
| Charlotte, NC | $375,000 | 14.1 | Moderate | Buy |
| Chicago, IL | $315,000 | 13.4 | Fair | Buy |
| Dallas, TX | $410,000 | 15.8 | Stretched | Neutral |
| Denver, CO | $540,000 | 17.9 | Stretched | Neutral |
| Houston, TX | $330,000 | 13.2 | Fair | Buy |
| Los Angeles, CA | $850,000 | 27.4 | Extreme | Rent |
| Miami, FL | $615,000 | 21.3 | Very Stretched | Rent |
| Minneapolis, MN | $360,000 | 14.6 | Moderate | Buy |
| Nashville, TN | $440,000 | 16.7 | Stretched | Neutral |
| New York, NY | $680,000 | 24.8 | Extreme | Rent |
| Orlando, FL | $385,000 | 16.1 | Stretched | Neutral |
| Phoenix, AZ | $420,000 | 15.4 | Stretched | Neutral |
| Portland, OR | $490,000 | 18.3 | Very Stretched | Neutral |
| Raleigh, NC | $420,000 | 15.6 | Stretched | Neutral |
| San Francisco, CA | $1,150,000 | 32.1 | Extreme | Rent |
| Seattle, WA | $740,000 | 23.6 | Extreme | Rent |
| Tampa, FL | $375,000 | 15.9 | Stretched | Neutral |
| Washington, DC | $560,000 | 19.1 | Very Stretched | Neutral |
Price-to-rent ratio: <15 = Buy signal; 15–20 = Neutral; >20 = Rent signal. Affordability based on median household income vs. payment on median-priced home at current rates. Data approximate — updated quarterly.
Factors That Favor Buying Right Now
- Inventory is recovering — more selection than 2021–2022
- Less bidding-war pressure in most markets vs. 2022 peak
- Locking in a 30-year rate before potential rate increases
- Down payment assistance programs remain available in most states
- Rate refinancing option if rates fall (you can always refi; you can't undo buying at a high price)
Factors That Favor Waiting
- Monthly payments are the highest vs. income since the 1980s
- Home prices have not corrected despite rate increases
- If your local market has a price-to-rent ratio above 20, renting and investing the difference is likely better
- If your job or location is uncertain within the next 3 years
Bottom line: The national picture is unfavorable for affordability, but housing markets are local. Use the Rent vs. Buy Calculator with your specific numbers — the answer depends heavily on your local market, your down payment, and how long you plan to stay.