Let’s break down the numbers. Back in 2020, the median home price in America was $387,000. Fast forward to April 2025, and that number has jumped to $585,000—a staggering 50% increase in just five years. But the real shocker? Monthly mortgage payments have more than doubled, rising 115% from $1,373 in 2020 to nearly $2,950 today. That’s the combined effect of skyrocketing prices and significantly higher mortgage rates.

Incomes haven’t kept up. Median income in the U.S. has only grown about 20% in that same timeframe. That mismatch between income and housing cost is the root of the current affordability crisis—and it’s forcing many would-be buyers to either wait or walk away entirely.

A huge part of the affordability issue lies in interest rates. The average 30-year mortgage rate in 2020 was around 3.4%. In 2025, we’ve seen rates range from 6% to as high as 12%, depending on the borrower and loan terms. That kind of increase means homebuyers are paying thousands more each year just in interest.

So what could fix this? If the Federal Reserve decides to lower interest rates later this year—a decision President Trump and Jerome Powell are actively discussing—we could see mortgage rates dip as well. If rates drop closer to 5%, it might reignite buyer demand and even push home prices back up again. But for now, those rate cuts remain speculative, and inflation, tariffs, and overall economic conditions will influence whether or not they happen.

Even if rates do fall, housing prices don’t drop quickly. Sellers rarely slash prices overnight. Most prefer to wait for a better offer or reduce their asking price in small increments. That’s why housing markets typically recover faster than they decline, and why buyers hoping for a major crash might be waiting longer than expected.

Beyond the numbers, there’s a broader conversation to be had about how our financial system works—and who it’s really working for. Many people feel the system is rigged to keep them behind. With limited financial education, rising debt, and soaring housing costs, it’s easy to feel like homeownership is slipping out of reach. And for some, it is.

That’s why I believe it’s more important than ever to understand that the home you live in is not necessarily an investment—it’s a liability. Yes, it provides stability. Yes, it can appreciate. But real wealth is built by investing outside your primary residence—in stocks, in income-generating real estate, or in businesses.

If you’re thinking about buying right now, here’s my advice: don’t try to time the market. Buy a home you can actually afford. Don’t overextend yourself on a variable rate. And don’t fall into the trap of thinking your dream house will make you financially secure. It won’t.

What will? Living below your means. Investing smart. And staying informed. The market will shift. Rates will rise and fall. But your financial stability depends on how you play the long game.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence

The post Can You Still Afford a Home? What Rising Rates and Prices Mean for Buyers in 2025 appeared first on ROI TV.

On the flip side, when the stock market seems too risky, some investors pivot to real estate to secure more predictable, long-term returns. At the same time, activity in the bond market is nudging mortgage rates slightly lower, potentially offering buyers a bit of relief. But interest rates aren’t the only thing shifting. Inventory is rising.

In San Diego alone, available homes have climbed to about 5,500—the highest level in four years. More inventory means buyers finally have options, and sellers face real competition. The days of 20-offer bidding wars are largely behind us. Homes are staying on the market longer, and price reductions are becoming more common. Kaplan emphasized the need for buyers and sellers alike to do their homework. In today’s market, understanding trends, neighborhood comps, and market dynamics is essential to avoid overpaying or underpricing. Tariffs are also starting to influence the housing landscape. As the cost of imported materials like lumber increases, so does the cost to build new homes. Kaplan laid out two opposing views: one side argues that tariffs could boost U.S. jobs and raise wages, potentially giving consumers more buying power. The other warns that higher construction costs will make homes less affordable. Right now, it’s unclear which side will win out, but the impact of tariffs on housing is something to watch closely.

The bigger issue Kaplan sees?

It’s not a housing shortage—it’s an affordability shortage. There may be more homes on the market, but if average Americans can’t afford to buy or rent them, the inventory boost won’t solve the real problem. For now, the best thing consumers can do is stay informed. Whether you’re buying, selling, or renting, knowledge is power. Kaplan advises sellers to analyze their local market and competitors to price realistically. Buyers and renters should resist emotional decisions and take time to evaluate their options carefully. In a market this complex, understanding the forces at play—from Wall Street to Washington—can make the difference between a smart move and a costly mistake.

The post Real Estate in Flux: How Stocks, Tariffs, and Inventory Are Reshaping the 2025 Housing Market appeared first on ROI TV.