America's Housing Market Shows K-Shaped Divide Between Luxury and Entry-Level Buyers
A new Realtor.com report highlights a K-shaped housing market in which financially secure luxury buyers remain active while price-sensitive shoppers are increasingly sidelined. The share of online home-shopping traffic for homes priced below $370,000 has dropped significantly since 2021, aligning with the reduced supply but not due to increased affordability. The report notes that entry-level demand and inventory have both declined, while mid- to upper-tier listings have grown. The median list price stabilized in July 2026 at $428,950 after a slight decline from the previous year, aligning with buyer expectations but not restoring access for all buyers. The data suggests that many households who previously competed for entry-level homes are no longer shopping due to affordability issues. In contrast, luxury home engagement remains steady despite increased inventory at higher price points.
Topics: affordability crisis home buyer behavior K-shaped economy market segmentation