In today’s market many people quietly wonder, “Will I ever be able to buy a home?” With soaring home prices, higher mortgage interest rates, and persistent pressure on affordability, the path to owning a home may feel distant. At Towerpoint Wealth we believe homeownership remains possible but success in 2025 requires clarity, planning, and a realistic strategy built around your financial picture, goals, and discipline. This article aims to guide you step‑by‑step through what the data says, who still can realistically buy, common pitfalls, and how to position yourself to turn aspiration into achievement.
Why Buying a Home Feels So Hard in 2025
The State of the Real Estate Market Today
The 2025 housing market remains tight and challenging for many prospective buyers. According to the most recent data from the National Association of Realtors, the typical median home price in the United States is around $416,900, about five times the median household income. This reflects a housing shortage that has persisted over the past few years, with home construction and apartment construction struggling to keep pace with demand.
Although interest rates and broader economic factors influence affordability, elevated home prices continue to be the main barrier for many who hope to buy a house. Prices surged sharply in many regions, intensifying the challenge for buyers.
Moreover, the national home values index shows that the average home value in 2025 is roughly $360,727, with the median sale price for existing home sales at about $368,300. That means many homes, single‑family homes, condos, and others, are still priced significantly above what many families can comfortably afford.
At the same time, supply remains constrained. While some regions have seen increased housing inventory and more listings compared with prior years, overall housing supply is still relatively tight compared with long-term norms, particularly in high-cost or highly desirable areas. This imbalance contributes to a less balanced market, where demand outstrips supply.
Affordability Under Pressure: What’s Driving the Strain
Affordability involves more than just purchase price. For those seeking a home loan, the cost of borrowing, monthly payment obligations, and ongoing costs of ownership all matter.
Mortgage interest rates, which heavily influence mortgage payment size, are a significant factor. The Federal Reserve Bank’s policies, including adjustments to the federal funds rate, impact these rates. As of late 2025, the average 30-year fixed-rate mortgage rate is around 6.25%, a modest drop from earlier in the year but still elevated compared to the historically low rates many buyers saw during the pandemic.
Even though mortgage rates dipped slightly below 7%, and in some cases hovered around 6.2%–6.3% last week, the combination of high home prices and these mortgage rate levels makes monthly payments and overall affordability difficult for many.
A quarterly measure of affordability, the Cost of Housing Index (CHI) from the National Association of Home Builders (NAHB) and Wells Fargo found that in the fourth quarter of 2025, a family earning the national median income would need about 36% of their income to cover the mortgage payment on a median-priced new home. That is well above the commonly recommended threshold of 30%.
Finally, the broader cost of homeownership has risen. The U.S. Census Bureau reports that median monthly owner costs for homeowners with a mortgage increased to $2,035 per month in 2024, up from $1,960 in 2023. That includes mortgage principal and interest, property taxes, car insurance, utilities, and other costs tied to owning a home.
Taken together rising home prices, higher borrowing costs, limited housing inventory, and growing monthly owner expenses it’s clear why many prospective buyers feel stuck asking, “Will I ever be able to buy a home?”
Common Emotional and Financial Barriers for Would‑Be Buyers
Beyond the raw numbers, many potential homebuyers face emotional and financial challenges that make home buying seem unattainable:
- Difficulty saving money enough for a substantial down payment, especially with high rents or prevailing cost of living pressures.
- Carrying existing debt such as student loans, business debt, or other financial obligations which reduces borrowing capacity and affects debt‑to‑income calculations.
- Concern that monthly payment obligations, including mortgage payment, property taxes, maintenance, and insurance may strain cash flow or limit financial flexibility.
- Worries about overpaying in a volatile real estate market or the risk that home prices might decline, especially after recent rapid appreciation amid economic uncertainty.
These stresses are real. And they underscore why a strategic, well-planned approach not simply enthusiasm matters if you hope to buy a house in today’s market.
Is It Still Possible to Buy a Home? Realistic Scenarios
Who Can Still Buy and What It Takes
Despite the headwinds, many home buyers are still entering the market successfully. The common traits among them are not luck but readiness, flexibility, and financial discipline. Buyers who tend to succeed often share these characteristics:
- Strong credit, typically a median credit score that meets or exceeds lender standards.
- Sufficient savings for a down payment and closing costs often aiming for 5%–20% down, depending on loan type and market.
- Manageable existing debt and stable current income that supports a mortgage payment without overextending cash flow, often from a full time job.
- Willingness to consider home types or locations they may not have initially envisioned for instance, a smaller home, a condo instead of a single‑family home, or a home in a more affordable region.
- Acceptance of a long-term view planning to own for 5–10 years or more, so they can benefit from home equity growth and avoid short-term volatility.
In short, homeownership remains possible but success in 2025 tends to favor those who approach the process with intentionality rather than expectation.
Buyer Profiles: Who Might Succeed and How
At Towerpoint Wealth we work with a variety of clients, each with unique financial circumstances. Below are five sample profiles of individuals or couples who may realistically be able to buy a home along with what it might take for them to succeed in today’s real estate market.
First-Time Buyer with High Income But Low Savings
A young professional earning well above the median income may struggle to assemble a large down payment while paying rent. However, by focusing on disciplined saving money, minimizing other liabilities, and potentially considering a lower-cost home or smaller down payment loan, this buyer could realistically qualify for a home loan within 12–24 months.
Established Business Owner with Variable Cash Flow
Many business owners have high net worth but uneven monthly cash flow. For them, mortgage approval often depends on demonstrating consistent earnings sometimes requiring 24 months of stable revenue. Working with a financial advisor to document income properly, reduce debt, and plan around cash flow fluctuations can make a home loan feasible.
High-Earner in a High-Cost City
Dual-income couples earning six figures in expensive metro areas may find single-family homes out of reach. However, they might consider smaller homes, condos, or multi-family units to get on the real estate ladder. Prioritizing long-term home equity over short-term lifestyle upgrades helps ensure financial stability while building wealth.
Retiree Downsizing or Relocating
Clients selling larger homes or relocating to lower-cost areas often qualify to purchase a home with cash or minimal financing. Their success depends less on income and more on timing aligning the sale of their existing home with favorable market conditions and ensuring the move supports their lifestyle and retirement goals.
Dual-Income Couple Planning a Family
For couples planning children, homeownership often becomes a long-term goal tied to stability, school districts, and future equity. With proper planning including budgeting for future expenses, anticipating cash flow changes, and selecting a home they can comfortably afford home buying can be part of a broader family wealth plan.
These scenarios illustrate that, although many are priced out, there remain realistic paths to homeownership. The key is aligning financial readiness with realistic expectations and a long-term mindset toward wealth building.
A Wealth Manager’s Framework for Making Homeownership Happen
At Towerpoint Wealth, we approach home buying as one component of a comprehensive wealth plan. Below is a five-step framework we encourage clients to follow when evaluating whether to buy a home and how to do it wisely.
Step 1: Define Your “Why”
Before looking at listings or worrying about mortgage payment calculations, it’s important to understand why you want to buy a house. Is it for stability, long-term investment, building home equity, raising a family, tax benefits, or legacy purposes? A clear “why” helps guide decisions about location, size, loan terms, and timing.
Your “why” frames whether homeownership is purely emotional, financial, or a mix of both. That clarity influences how much risk you’re willing to take and how conservative your home buying strategy should be.
Step 2: Audit Your Finances
Conduct a thorough review of your current financial picture:
- Current net worth (assets minus liabilities)
- Savings account balances and liquidity
- Monthly cash flow, including income and recurring expenses
- Existing debt (student loans, business loans, consumer debt)
- Credit profile and median credit score relative to lender expectations
This audit helps determine what you can realistically afford without jeopardizing other financial goals such as retirement, investing, or emergency savings.
Step 3: Clarify Your Budget and Timeline
When planning to buy a home, affordability goes well beyond the listing price. You should model total ownership costs, including: mortgage payment (principal and interest), property taxes, insurance premiums including car insurance, maintenance, possible homeowners association (HOA) fees, and other recurring expenses.
Work backward from what you can comfortably afford each month to establish a realistic purchase price and down payment target. Also, define your time horizon are you buying for the long term or expecting to move within a few years? A longer-term horizon strengthens the case for building home equity and using real estate as a long-term investment.
Step 4: Explore Lending Options and Loan Terms
Not all home loans are the same. In 2025, prospective buyers can still access a variety of loan structures depending on their credit, down payment, and location:
- Conventional loans with down payments ranging from 5% to 20%
- Low-down-payment loans for first-time buyers or those with limited savings
- Loans backed by government-sponsored enterprises such as Fannie Mae in eligible cases
- Adjustable-rate or fixed-rate loans, with varying loan terms
Mortgage lenders and real estate agents often encourage buyers to compare loan options carefully, especially in a market where mortgage rate fluctuations significantly impact monthly payment size and long-term cost of ownership.
Step 5: Partner with a Financial Advisor for Strategic Planning
Home buying should not be an isolated decision it should be part of an integrated financial plan. As a fiduciary wealth management firm, Towerpoint Wealth evaluates:
- How a home loan fits into your broader portfolio of investments and savings
- Cash flow, liquidity needs, and future financial goals
- The trade-off between home equity (a long-term investment) and other investment opportunities such as when you start investing
- Tax implications, insurance needs, and estate planning considerations
This holistic approach helps ensure that buying a house enhances rather than jeopardizes your long-term wealth and financial security.
Mistakes to Avoid When Planning to Buy a Home
Even for well-positioned buyers, mistakes can derail homeownership plans. Here are common pitfalls and why they matter.
Overextending on Mortgage Size Just Because You Qualify Doesn’t Mean You Should Borrow the Maximum
It is common for mortgage lenders to pre-qualify buyers for more than they should realistically spend, especially in a high home price environment. Accepting the maximum approved loan amount can lead to being “house-poor,” where minimal income remains for savings, investments, or unexpected expenses.
A more conservative approach one aligned with financial goals and lifestyle often better preserves long-term financial stability.
Ignoring the Hidden Costs of Ownership
Many buyers focus only on the purchase price and monthly mortgage payment. But real cost of home ownership includes property taxes, insurance, maintenance, utilities, and sometimes HOA or condo fees. Overlooking these can lead to financial strain when they accumulate, sometimes unpredictably.
A proper budget must account for all recurring costs not just the home loan.
Relying Too Heavily on Timing the Market
Some prospective buyers delay buying, hoping for a “housing market crash” or dramatic home prices drop and mortgage rate relief. While market conditions may shift, predicting when or if prices drop is extremely difficult.
Few experts expect a broad housing market crash in 2025, despite some regional fluctuations in price trends and housing inventory.
Waiting for a perfect “buying moment” can backfire, because home prices might continue to rise or rates may remain elevated. For many buyers, readiness not perfect timing remains the smarter path forward.
What the Future Holds: Should You Wait or Move Forward?
2026 and Beyond A Possible Market Reset?
There are early signs that the real estate market may modestly rebalance in favor of buyers. Data show that easing mortgage rate trends combined with slowing home price growth or modest listing price adjustments in some areas contributed to a slight uptick in affordability in 2025 compared with 2024.
Some analysts expect continued improvement during the next 12–24 months, citing softening demand, additional housing inventory, and a potentially more favorable lending environment.
Despite these potential shifts, major structural issues remain. Many prospective buyers still need higher incomes often six-figure incomes plus significant savings, to comfortably afford a median-priced home under current mortgage rate conditions.
The Case for Buying Now If You’re Financially Prepared
If you have stable income, savings for a down payment, manageable existing debt, and you value long-term home equity and stability, buying now can make sense. Advantages include:
- Starting home equity accumulation earlier, which over time can contribute meaningfully to net worth
- Locking in a mortgage payment before potential future rate increases or further house price gains influenced by the federal reserve’s policies
- Avoiding rising rents in competitive rental markets, especially if you plan to stay 5+ years
For many, homeownership remains one of the most powerful long-term investments and wealth-building tools when handled with discipline and a long-term mindset.
The Case for Waiting If You’re Not Ready
If you lack sufficient savings, have unstable income, carry high existing debt, or expect major lifestyle changes (job move, kids, business venture), it may be wise to wait and build a stronger financial foundation.
Use the time to improve credit, reduce debt, increase savings, and perhaps revisit home buying when your financial readiness aligns better with long-term goals.
In many cases, that approach strengthens your buying power and ensures that when you do buy a home, it supports, not burdens, your overall wealth plan.
FAQs Common Questions About Buying a Home in Today’s Market
How much do I need to buy a home in 2025?
It depends on the home’s price and the loan type. For a median-priced home of about $416,900, planning on 5%–20% down payment is typical. Closing costs, which include taxes, fees, and other expenses, can add another 2%–5%, so you may need at least enough money to cover $20,000–$100,000 in cash depending on your down payment and home price.
Is it smarter to rent or buy right now?
It depends on your time horizon, finances, and personal goals. Renting may be more affordable short-term, especially if you plan to move soon or expect income fluctuations. Buying tends to make more sense if you plan to stay in the home for 5+ years, are stable financially, and view real estate as part of a long-term investment and wealth building strategy.
What credit score do I need for a home loan?
Most mortgage lenders look for credit scores of at least the “median credit score” threshold typically around 620–700. A higher score improves your odds for better loan terms.
Can I buy a home with existing debt or student loans?
Yes, many prospective buyers with existing debt still qualify if overall debt-to-income ratio remains manageable. Lenders consider total liabilities and income to evaluate qualifying for a home loan. Effective planning and working with a financial advisor can improve your chances.
Should I wait for a housing market crash or price declines before buying?
Relying on falling home prices is speculative. A broad housing market crash is unlikely in 2025 according to most housing experts. Home prices may stabilize or even modestly decline in some markets, but many areas will remain out of reach due to affordability constraints. For many buyers, readiness not perfect timing remains the stronger foundation.
Final Thoughts From “Will I Ever” to “How I Will”
If you have found yourself asking, “Will I ever be able to buy a home?” you are not alone. The 2025 housing market presents genuine challenges: soaring home prices, elevated mortgage interest rates, tight inventory, and rising monthly costs. For many, achieving homeownership will take thoughtful planning, realistic expectations, and careful financial preparation.
At Towerpoint Wealth, we view homeownership not just as a purchase but as a long-term commitment and a valuable component of a broader wealth strategy. With intentional planning, disciplined saving money, and strategic decision‑making, homeownership remains within reach for many of our clients. It is not simply about what you can borrow, but what you can comfortably afford today and well into the future.
