Can you still afford a home? The number's don't lie
Recently, NBC released their Home Buyer Index to dig beneath the headlines and see just how hard it is to buy a home right now. That index has generated national shockwaves — but as a local expert, I want to translate what it really means for you (or in Albuquerque, or your ZIP code).
Let me tell you a story first — a client of mine, I’ll call him James, qualified today: good credit, stable income, pre-approved for a mortgage. He found a modest house well within local market value. But he told me, ‘I’m going to wait one more year to boost my credit a bit, negotiate a better deal.’
I did the math. In our county, homes appreciated ~4+ % last year. If you wait a year, you risk paying more, and you may find that your buying power has declined, not increased — unless your income grows more than that appreciation.
So when NBC points to worsening affordability nationally, don’t assume that means “you can never buy.” Let’s unpack what their index tells us — and what it doesn’t — and then zero in on how this plays out locally. Stick with me.
What Is the NBC Home Buyer Index?
The NBC Home Buyer Index is a tool designed to measure how difficult it is to buy a home across the U.S. — on a scale from 0 to 100. A higher score = harder to buy.
The index combines four main pillars:
- Cost (home prices relative to income, mortgage rates, insurance, taxes)
- Competition (how many buyers outbid each other, speed of contracts)
- Scarcity (inventory — how many homes are for sale)
- Economic instability (interest volatility, unemployment risk, market uncertainty)
In its national reading, the index has hovered in the 80s, signaling “extreme difficulty” in many markets.
But — and this is crucial — NBC also publishes county-level data where data allows. So it’s not just “USA is broken,” it’s “this place is worse, that place is better.”
What the Index Is Showing Us Today (and What’s Changed)
According to recent reporting, the index in many months has stayed in the 80s — that’s a red flag.
A few signals to highlight:
- Home prices nationwide still are strong; many counties saw increase in median listing price year over year.
- Competition has somewhat cooled — fewer buyers are bidding wildly over list in some regions.
- Inventory remains tight in many markets, though some places have seen slight increase in active listings.
- As for rates, they’ve eased slightly from peaks, but still remain high compared to the pandemic era norms.
What does that all mean emotionally for would-be buyers? It means the headlines shouting “housing is unreachable!” are grounded — yes, there’s serious pressure.
But it also means there's variability, cracks of opportunity, and places where you might fare better.
National vs Local: The Myth of Uniform Unaffordability
Big national headlines have a way of making things feel monolithic: ‘Homeownership is dead.’ That’s overdramatic and often false. The NBC index is national, yes — but it masks local variance.
Here’s what matters:
- Some counties have much lower difficulty scores because income, supply, and demand differ there.
- In growing cities with high demand (like coastal metros or booming Sun Belt markets), the index is more punishing. In slower or less competitive areas, there may still be breathing room.
- Local interest rates, property tax burdens, evaluation markets, and even school districts shape whether a home is “affordable” in your context.
- A buyer in Albuquerque (or your specific county) could be in a better position than the national story suggests.
So: don’t let a national article convince you that all doors are closed. Use it as a signal, not a verdict.
What to Watch in Your Local Market (and What You Can Do)
To ground all this in your world, here’s a toolkit of what to inspect locally — and how you can act:
What to inspect locally:
- Your county’s NBC index (if available).
- Median home price trends month over month.
- Active inventory (how many houses are on the market).
- Days on market — if homes linger, you may have negotiating power.
- Local wage/income trends (is income growth keeping pace?).
- Mortgage rate environment in your region (lenders sometimes add regional margins).
- Local tax, insurance, HOA costs that affect monthly payment beyond mortgage.
What you can do:
- Position yourself with clean credit and low debt now (so when opportunity arrives, you’re ready).
- Be flexible on timing, neighborhoods, or size.
- Watch for homes that have been on market longer (sometimes sellers get leeway).
- Consider creative financing, side income, or co-ownership if that fits your risk tolerance.
- Partner with a local agent (like me!) who tracks your neighborhood weekly — they’ll spot when conditions soften.
Emotionally, don’t get paralyzed. Use national headlines as a fuel to sharpen your plan, not to stop your journey.
Revisiting the Story: Why Waiting Can Hurt You
Back to James, my client. He thought waiting 12 months would help him negotiate better. It might — but likely not enough to outpace appreciation + rising rates.
Let’s say homes in our area rise 4 % per year (a modest estimate) and mortgage rates drift upward. If James waits, he may gain a bit of credit score improvement, but he loses buying power the moment prices rise.
The NBC index warns us: markets are tough, and the pressure is mounting. A national index in the 80s doesn’t bite — local markets do. If you wait while conditions worsen, you might find yourself at a worse position than today.
That doesn’t mean buy recklessly. It means wisely — with eyes open, strategy in hand, readiness in pocket.
Conclusion
Affordability is under pressure. The NBC Home Buyer Index gives us a sobering national overlay. But it’s not destiny — it’s context. You are not powerless.
Understand your local dynamics. Prepare financially. Move when opportunity aligns (not just when fear forces you). Use national data as your compass, not your jail cell.
If you found this helpful, drop a comment below — tell me your ZIP code or city, and I’ll pull what your local NBC index is (if available). Subscribe for more real estate insight, and visit my site to dig deeper into buying and selling strategies in your market.
Thanks for spending this time with me. I’ll see you in the next one.
TOP Albuquerque Realtors®
(C) 2025 Joshua Christensen, Qualifying Broker | NMREC 20522 | Realty One of NM | 505-883-9400
Can you still afford a home? The number's don't lie
Recently, NBC released their Home Buyer Index to dig beneath the headlines and see just how hard it is to buy a home right now. That index has generated national shockwaves — but as a local expert, I want to translate what it really means for you (or in Albuquerque, or your ZIP code).
Let me tell you a story first — a client of mine, I’ll call him James, qualified today: good credit, stable income, pre-approved for a mortgage. He found a modest house well within local market value. But he told me, ‘I’m going to wait one more year to boost my credit a bit, negotiate a better deal.’
I did the math. In our county, homes appreciated ~4+ % last year. If you wait a year, you risk paying more, and you may find that your buying power has declined, not increased — unless your income grows more than that appreciation.
So when NBC points to worsening affordability nationally, don’t assume that means “you can never buy.” Let’s unpack what their index tells us — and what it doesn’t — and then zero in on how this plays out locally. Stick with me.
What Is the NBC Home Buyer Index?
The NBC Home Buyer Index is a tool designed to measure how difficult it is to buy a home across the U.S. — on a scale from 0 to 100. A higher score = harder to buy.
The index combines four main pillars:
- Cost (home prices relative to income, mortgage rates, insurance, taxes)
- Competition (how many buyers outbid each other, speed of contracts)
- Scarcity (inventory — how many homes are for sale)
- Economic instability (interest volatility, unemployment risk, market uncertainty)
In its national reading, the index has hovered in the 80s, signaling “extreme difficulty” in many markets.
But — and this is crucial — NBC also publishes county-level data where data allows. So it’s not just “USA is broken,” it’s “this place is worse, that place is better.”
What the Index Is Showing Us Today (and What’s Changed)
According to recent reporting, the index in many months has stayed in the 80s — that’s a red flag.
A few signals to highlight:
- Home prices nationwide still are strong; many counties saw increase in median listing price year over year.
- Competition has somewhat cooled — fewer buyers are bidding wildly over list in some regions.
- Inventory remains tight in many markets, though some places have seen slight increase in active listings.
- As for rates, they’ve eased slightly from peaks, but still remain high compared to the pandemic era norms.
What does that all mean emotionally for would-be buyers? It means the headlines shouting “housing is unreachable!” are grounded — yes, there’s serious pressure.
But it also means there's variability, cracks of opportunity, and places where you might fare better.
National vs Local: The Myth of Uniform Unaffordability
Big national headlines have a way of making things feel monolithic: ‘Homeownership is dead.’ That’s overdramatic and often false. The NBC index is national, yes — but it masks local variance.
Here’s what matters:
- Some counties have much lower difficulty scores because income, supply, and demand differ there.
- In growing cities with high demand (like coastal metros or booming Sun Belt markets), the index is more punishing. In slower or less competitive areas, there may still be breathing room.
- Local interest rates, property tax burdens, evaluation markets, and even school districts shape whether a home is “affordable” in your context.
- A buyer in Albuquerque (or your specific county) could be in a better position than the national story suggests.
So: don’t let a national article convince you that all doors are closed. Use it as a signal, not a verdict.
What to Watch in Your Local Market (and What You Can Do)
To ground all this in your world, here’s a toolkit of what to inspect locally — and how you can act:
What to inspect locally:
- Your county’s NBC index (if available).
- Median home price trends month over month.
- Active inventory (how many houses are on the market).
- Days on market — if homes linger, you may have negotiating power.
- Local wage/income trends (is income growth keeping pace?).
- Mortgage rate environment in your region (lenders sometimes add regional margins).
- Local tax, insurance, HOA costs that affect monthly payment beyond mortgage.
What you can do:
- Position yourself with clean credit and low debt now (so when opportunity arrives, you’re ready).
- Be flexible on timing, neighborhoods, or size.
- Watch for homes that have been on market longer (sometimes sellers get leeway).
- Consider creative financing, side income, or co-ownership if that fits your risk tolerance.
- Partner with a local agent (like me!) who tracks your neighborhood weekly — they’ll spot when conditions soften.
Emotionally, don’t get paralyzed. Use national headlines as a fuel to sharpen your plan, not to stop your journey.
Revisiting the Story: Why Waiting Can Hurt You
Back to James, my client. He thought waiting 12 months would help him negotiate better. It might — but likely not enough to outpace appreciation + rising rates.
Let’s say homes in our area rise 4 % per year (a modest estimate) and mortgage rates drift upward. If James waits, he may gain a bit of credit score improvement, but he loses buying power the moment prices rise.
The NBC index warns us: markets are tough, and the pressure is mounting. A national index in the 80s doesn’t bite — local markets do. If you wait while conditions worsen, you might find yourself at a worse position than today.
That doesn’t mean buy recklessly. It means wisely — with eyes open, strategy in hand, readiness in pocket.
Conclusion
Affordability is under pressure. The NBC Home Buyer Index gives us a sobering national overlay. But it’s not destiny — it’s context. You are not powerless.
Understand your local dynamics. Prepare financially. Move when opportunity aligns (not just when fear forces you). Use national data as your compass, not your jail cell.
If you found this helpful, drop a comment below — tell me your ZIP code or city, and I’ll pull what your local NBC index is (if available). Subscribe for more real estate insight, and visit my site to dig deeper into buying and selling strategies in your market.
Thanks for spending this time with me. I’ll see you in the next one.
