Rocket Fuel Newsletter – Home affordability trends, the evolving housing market, and job satisfaction report
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This week we explore how the housing market looks for different states and different generations.
Fuel up! 🚀
Home buyers now need nearly $117K in income
The 2025 Housing Affordability Study by Bankrate reveals that prospective homebuyers need an annual income of $116,986 to afford a typical home in the U.S., reflecting a 50% increase since 2020. In 30 states and D.C., a six-figure income is now required, compared to just six states in 2020. The biggest affordability jumps occurred in Utah and Montana, while Texas saw the smallest increase. Experts advise aspiring buyers to focus on credit health, explore down payment assistance, and consider alternative housing options while waiting for market conditions to improve.
Income needed to afford a typical home by state (January 2025)
Boomers take back the housing market
According to the latest NAR report, baby boomers have reclaimed their spot as the largest group of home buyers, making up 42% of purchases. Millennials, in comparison, have dropped to 29% from 38% one year ago. A key factor in this change is cash, with half of older boomers and 40% of younger boomers buying homes outright and skipping financing altogether. With affordability challenges reshaping buyer demographics, the housing market is seeing a generational shift in who’s calling the shots.
Millennial home buyers prioritize quality over size
Millennial buyers desire more space than other generations but are willing to sacrifice square footage for higher quality features and amenities. With affordability challenges rising, builders are responding by constructing smaller homes and incorporating outdoor living spaces. To support homeownership, some builders are even reducing prices and offering incentives
Job satisfaction gaps among blue-collar workers
Blue-collar workers report lower job satisfaction, have weaker attachment to their jobs, and feel less respected compared to other U.S. workers, according to a Pew Research Center survey. Over half see their jobs as just a way to get by, with younger workers and women feeling this most acutely. Pay dissatisfaction is widespread, especially as wages struggle to keep up with the cost of living. Despite this, blue-collar workers seek growth, with many seeing on-the-job training or certifications as the best path forward, rather than formal education.
Purchase season is here. Stay ahead by engaging with industry leaders and discovering what’s next. We’ll be at these events – let’s connect!
- April 23 – 25: Texas Bankers Association Annual Convention - San Antonio, TX
- April 28 – May 1: Consumer & Residential Mortgage Lending Conference – San Antonio, TX
- April 30 – May 2: Farm Credit Home Lending Conference – Long Beach, CA
Join us for meaningful conversations, valuable insights, and new opportunities to drive your business forward. We look forward to seeing you there.
Last week’s puzzle lived up to its 5-Rocket rating! Just one solver finished in under one minute; that solver came in at 58 seconds.
Let’s keep the challenges rolling! This week’s puzzle gets 4 Rockets out of 5.
Good luck!