In the final part of the 2025 Market Shift Update, David Sidoni breaks down why affordability is finally improving — and why old affordability formulas don’t tell the full story. Discover how falling rates and shifting rent dynamics create opportunities for first-time buyers.
For five years, first-time buyers have faced brutal affordability math. Home prices skyrocketed from $315,000 in 2020 to $438,000 in 2025, far outpacing normal appreciation. But the tide is finally turning. In this episode, David Sidoni explains how flattening home prices and falling mortgage rates are reshaping the affordability index in buyers’ favor.
More importantly, David reveals the fatal flaw in traditional affordability formulas: they ignore rent. Rent is your biggest monthly output — and it’s rising no matter what. When you factor in rent replacement, buying often makes more financial sense than continuing to rent. David shows how to use this perspective to assess your readiness and why waiting for “perfect” affordability is a losing strategy.
Packed with myth-busting insights, this episode equips buyers with the clarity and tactics needed to move forward in today’s shifting market.
“Buying a home is not a want purchase — it’s a necessity purchase. You’re paying for shelter either way.”
Highlights
- Why affordability has been so brutal since 2020
- How today’s interest rate drop makes homes more affordable, even at higher prices
- The flawed formula economists use to measure affordability
- Why factoring in rent changes the entire equation
- Tactical steps first-time buyers can use in today’s market shift
Referenced Episodes
- 382 - Part 1: Rates
- 383 - Part 2: Sales, Inventory & Affordability
- 279 - New Build vs Resale Houses for First Time Homebuyers
- 350 - From ‘Years Away’ to Homeowner: Your Last Lease Ever
- 355 - Real Answers Pt 4 – Should I Rent or Buy in 2025?
- 168 - Get Off Your Ass!
Website
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David Sidoni, the "How to Buy a Home Guy," is a seasoned real estate professional and consumer advocate with two decades of experience helping first-time homebuyers navigate the real estate market. His podcast, "How to Buy a Home," is a trusted resource for anyone looking to buy their first home. It offers expert advice, actionable tips, and inspiring stories from real first-time homebuyers. With a focus on making the home-buying process accessible and understandable, David breaks down complex topics into easy-to-follow steps, covering everything from budgeting and financing to finding the right home and making an offer.
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This is one part of a 3 part series highlighting the most significant housing market shift since this podcast began in 2019. Check out the podcast library for the full series for a complete update.
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