On November 10, 2025, Rocket Companies Inc., through its subsidiary Redfin, released a compelling report that sheds light on the current state of homebuying affordability for U.S. military veterans. While affordability has shown some signs of improvement over the last two years, a majority of homes remain out of reach for many veterans, regardless of whether they are utilizing VA loans or conventional financing.

1. Key Findings on Affordability

Year-on-Year Improvements

The report indicates that just over 21.8% of home listings across the nation are now affordable to the average U.S. military veteran using a VA loan, a slight increase from 20.2% in 2023. For veterans opting for conventional loans, affordability has risen to 26.5%, up from 25.5% in the previous year. Despite these improvements, the numbers remain stark; only 22.8% of listings are affordable to the average non-veteran household with a conventional loan, reflecting an overall modest recovery in the housing market.

Economic Factors Influencing Affordability

Several economic indicators have contributed to the slight uptick in affordability for both veterans and non-veterans alike:

Mortgage Rates: The average mortgage rate has decreased from 6.81% in 2023 to 6.66% today. This reduction has been pivotal in easing monthly housing payments for potential homebuyers.

Home Sale Prices: The median U.S. home sale price has seen a subdued year-over-year increase of less than 2% since April, stabilizing the market after a period of rapid price hikes.

Rising Incomes: The median household income for veterans has surged to approximately $85,955, a notable 10% increase since 2023. Similarly, non-veterans have seen their incomes rise to an estimated $81,078.

2. Challenges for Veteran Homebuyers

Despite these positive trends, veterans utilizing VA loans continue to face significant challenges. The report highlights that 90% of VA loan users make no down payment, leading to inflated monthly payments. Redfin Economist Grishma Bhattarai emphasized the dual-edged nature of VA loans, stating that while they provide a pathway to homeownership without the need for a substantial down payment, they can also result in larger loan amounts and increased monthly costs.

VA Loan Usage on the Rise

Interestingly, the share of mortgaged homebuyers using VA loans has risen to 7.3% as of August 2025, up from 6.5% a year earlier. This increase marks the highest percentage recorded for the month of August in six years, indicative of a growing acceptance among sellers, particularly in today's buyer's market where no down payment options are more frequently considered.

3. Historical Context: A Decade of Decline

The disparities in homebuying affordability for veterans have become increasingly pronounced over the past decade. In 2015, veterans using VA loans could afford over 53% of home listings nationwide, a stark contrast to the mere 21.8% they can access today. This decline is attributed to skyrocketing home prices during the pandemic and subsequent increases in mortgage rates, which have significantly outpaced income growth.

Regional Variations in Affordability

The report also highlights regional disparities in affordability for veterans. Major metropolitan areas like Detroit and San Antonio showcase a higher percentage of affordable listings, with 60% and 53.4% of homes, respectively, accessible to veterans using VA loans. Conversely, California markets such as San Jose and Los Angeles present daunting challenges, with less than 1% of homes affordable to veterans utilizing VA loans.

4. Conclusion

The press release from Rocket Companies Inc. underscores a complicated narrative in the current housing market. While slight improvements in affordability for veterans using VA loans are encouraging, the overarching reality remains that many are still priced out of potential homeownership. As the market continues to evolve, ongoing monitoring of economic factors and regional trends will be essential for understanding the changing landscape of homebuying affordability for U.S. veterans.

For further insights and detailed data, interested parties can view the complete report on Redfin's website.

Original press release