Affordability Squeeze Is Reshaping U.S. Housing: Price Cuts, Delistings, and a Shift to Cheaper Metros

Affordability is still the headwind

The headline 30‑year fixed rate has steadied in the low‑6s—6.24% as of November 13, 2025—near this year’s lows. That relief matters, but the typical payment remains far above pre‑pandemic norms, which is why behavior across the market is changing even with modestly lower rates. [nasdaq.com] A separate cut of data shows the typical mortgage payment has more than doubled since 2019, underscoring why demand remains selective. [zillow.com]

Inventory has improved versus last year, with just over 1.1 million homes on the market and active listings up roughly 15% year over year in mid‑October. But new listings are not surging; much of the increase reflects homes sitting longer. [realtor.com]

Sellers’ new playbook: price cuts—or delist

Price reductions are more common as sellers chase buyers. In October, 20.2% of active listings had a price cut nationally, up 1.6 percentage points from a year earlier. [mediaroom.realtor.com] Earlier in the year, the share of listings with cuts set seasonal records in Redfin’s data—another sign of softening demand. [redfin.com]

A growing number of owners are choosing not to play ball at all. Realtor.com’s monthly reports show delistings rose 48% year over year in June and 57% in July, with delist‑to‑new‑listing ratios climbing from 0.21 in June to 0.24 in July (meaning roughly one delist for every four new listings). Miami, Phoenix, and Riverside posted some of the highest ratios. [realtor.com] [realtor.com]

Buyer leverage shows up in the data

On the buy‑side, leverage is inching back. For the four weeks ending October 12, Redfin tracked 48 median days on market (longest October in years), just 23% of sales closing above list, and an average sale‑to‑list of 98.3%—all pointing to more room to negotiate. [redfin.com]

Another signal: cancellations. Roughly 15% of home‑purchase agreements fell through in September, the highest rate for that month in records back to 2017. Buyers are walking when inspections or math don’t pencil, and they have more alternatives than a year ago. [axios.com]

Where the value is: Pittsburgh and pockets of Florida

The affordability squeeze is steering shoppers toward metros where dollars stretch. Pittsburgh stands out: the metro’s median sale price hovered around $250,000 in October and sits about 43% below the national median, keeping ownership costs comparatively manageable. [redfin.com]

In Florida—despite high‑profile affordability and insurance challenges—pockets of value remain. Several smaller cities and suburbs still see substantial shares of listings under $200,000 (often condos or smaller homes) in markets like Lauderdale Lakes and Lauderhill, while parts of the Panhandle/Gulf Coast can deliver sub‑$200k entry points as well. [foxbusiness.com] Broader affordability lists for 2025 also include Florida locales under the $250k mark, reinforcing the “flight to value” within the state. [cnbc.com]

Buyer leverage is also most visible in Florida and Texas, where Redfin classifies many metros as buyer’s markets due to surging inventory. That dynamic helps explain both the rise in price cuts and the willingness of some sellers to delist and wait. [redfin.com]

What’s next: scenarios into 2026

If mortgage rates drift sideways near current levels, the most likely outcome is continued regional dispersion. Tighter Northeast/Midwest metros should remain relatively firm, while parts of the South and West with outsized inventory gains will keep seeing longer marketing times, more reductions, and occasional monthly price declines. [realtor.com] If rates step down materially, demand will respond—but payment constraints and insurance costs (especially in coastal states) will limit how far prices can re‑accelerate.

Two risks to watch:

• Insurance and climate costs in hurricane‑ and wildfire‑exposed metros, which can blunt affordability even when nominal prices look attractive. • Local job markets and new‑build pipelines; Sun Belt metros with large inventory overhangs are more vulnerable to further discounting when demand wobbles. [redfin.com]

Practical playbook for buyers and sellers

Buyers

• Hunt the “stale” shelf: target listings on market 4+ weeks. That’s where price cuts and credits cluster. [redfin.com] • Use financing and inspection contingencies. With cancellations at multi‑year highs for the season, sellers know you have options. [axios.com] • Ask for credits instead of deeper list‑price cuts to reduce your payment (e.g., rate buydowns or closing‑cost credits). [nasdaq.com]

Sellers

• Price to today—not to last spring. If showings stagnate after 2–3 weeks, a timely, data‑backed reduction usually beats months of carrying costs. [mediaroom.realtor.com] • If you must delist, do it with a plan (repairs, staging, seasonality) and clear re‑entry criteria; otherwise you risk sitting out buyers’ best windows. [realtor.com] [realtor.com] • Consider offering credits or a temporary buydown; they’re often cheaper than headline cuts and directly solve buyer payment pain. [nasdaq.com]

Bottom line

Affordability is calling the shots. With rates near 2025 lows but payments still historically high, the market is negotiating its way to balance: more price cuts, more withdrawn listings, and a steady migration toward cheaper metros like Pittsburgh and select Florida pockets. Expect that push‑and‑pull to define the next few quarters. [nasdaq.com] [mediaroom.realtor.com] [redfin.com] [redfin.com]