The housing market is changing again.
Across the country, more homes are coming on the market, mortgage rates have stabilized compared to the past two years, and buyers finally have a few more choices than they did during the peak of the housing frenzy.
So why do so many buyers still feel stuck?
According to the National Association of REALTORS® and Realtor.com® Housing Mismatch Report released in May 2026, the issue is not simply the number of homes available. The real challenge is that many of the homes hitting the market are still priced above what typical households can comfortably afford.
That disconnect is creating what economists are calling a “housing mismatch.”
And it’s affecting markets across the country — including Greater Lansing.
WHAT IS THE HOUSING MISMATCH?
The report introduces a new concept called the “Listing-Income Alignment Score.” It measures how closely homes for sale match the income levels of local buyers.
In simple terms:
- Are enough homes available at price points local buyers can actually afford?
- Or is most of the inventory concentrated at higher price ranges?
Nationally, the report found the market is operating at only about 75% of a balanced housing market.
That means many buyers can only access about three-quarters of the housing opportunities they would normally have in a healthier market.
WHY THIS MATTERS IN GREATER LANSING
This is something we are seeing locally as well.
Inventory has improved in many parts of Greater Lansing compared to the ultra-tight conditions of 2021 through 2023. Buyers are no longer competing against 20 offers on every listing.
But affordability remains the issue.
Many buyers today are:
- dealing with higher monthly payments,
- cautious about interest rates,
- and struggling to find homes within their comfort zone financially.
The strongest demand locally continues to center around:
- well-maintained homes,
- realistic pricing,
- and properties in the entry-level to mid-range price categories.
Homes that are overpriced or require significant updates often sit longer because buyers have become more payment-sensitive.
MIDDLE-INCOME BUYERS ARE FEELING THE MOST PRESSURE
One of the most important findings in the report is that middle-income buyers are facing the largest shortage of affordable listings.
The report estimates that households earning around $75,000 annually can currently access only about 23% of listings nationally, compared to roughly 44% in a balanced market.
That gap affects:
- first-time buyers,
- young families,
- move-up buyers,
- and even many downsizing seniors trying to simplify their housing costs.
This also creates a ripple effect:
when buyers at one level struggle to move, it slows transactions throughout the market.
WHAT THIS MEANS FOR SELLERS
For sellers, this market requires strategy.
The days of simply putting a home on the market and expecting instant multiple offers are fading in many price ranges.
Today’s buyers are:
- comparing value carefully,
- watching monthly payments closely,
- and prioritizing homes that feel move-in ready.
That means:
- pricing matters more,
- condition matters more,
- presentation matters more,
- and realistic expectations matter more.
Homes aligned with what buyers can comfortably afford are still selling.
WHY THIS MATTERS FOR SENIORS AND LIFE TRANSITIONS
This is especially important for seniors and families navigating life transitions.
Many homeowners considering downsizing are discovering:
- replacement housing costs are higher,
- independent living and senior housing costs are rising,
- and buyers purchasing their current home may face affordability constraints.
That makes planning more important than ever.
A successful transition today requires looking at:
- timing,
- equity,
- affordability,
- housing options,
- and long-term financial comfort
The latest Housing Mismatch Report confirms something many buyers and sellers are already feeling:
The challenge in today’s market is not simply a lack of homes.
It’s a lack of homes at price points many households can comfortably afford.
For Greater Lansing homeowners, buyers, and seniors planning their next move, understanding these market dynamics is critical to making informed decisions.
The market is improving — but strategy, preparation, and realistic expectations matter more than ever.
If you’re thinking about downsizing, selling, relocating, or simply trying to understand today’s housing market in Greater Lansing, I’d be happy to help you evaluate your options and build a plan that fits your goals.
📍 Mike Bowler
Associate Broker | eXp Realty LLC
SRES®, CRB®, ePRO®
“Expect The Best”
