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There’s a trend going around right now where people talk about “post-2016.”

In real estate, that nostalgia comes up all the time: “It was so much easier back then,” “Homes were affordable in 2016,” or “I will wait until the market goes back to normal.”

That feeling is stronger among Millennials, and there is a reason for that. Millennials came of age financially after the Great Recession. Many delayed buying, paid down student loans, or stayed in the rental market longer than planned. By the time many were ready to buy, prices were already rising, inventory was tightening, and competition was increasing.

So, let’s look at what the housing market actually looked like in 2016, and how different it looks today.

2016 vs. Today

Home prices: Home prices are 77% higher than in 2016.

  • 2016: $233,800
  • 2025: $414,400

Inventory: Still roughly 470,000 fewer homes available for sale today than in 2016.

  • 2016: 1.65 million homes
  • 2025: 1.18 million homes

Home sales: About 1.39 million more home sales occurred in 2016.

  • 2016: 5.45 million homes sold
  • 2025: 4.06 million homes sold

Mortgage rates: The cost of borrowing was significantly lower in 2016.

  • 2016 mortgage rates: 3.7%
  • 2025 mortgage rates: 6.6%

Housing affordability: In 2016. The typical family earned about 66% above the qualifying income.

  • Affordability index in 2016: 166.2, meaning the typical family earned about 66% more than the qualifying income
  • At the end of 2025, affordability was 108.2 — still technically affordable, but far tighter.

Construction: There are about 20% more single-family housing starts now than in 2016.

  • 2016: 785,000 single-family housing starts
  • 2025: 939,000 single-family housing starts

Age of first-time homebuyers: The median age of the first-time homebuyers has jumped by 8 years.

  • 2016: 32
  • 2025: 40

10-year equity gains: The wealth generated by homeownership is significantly higher than it was.

  • 2016: Less than $15,000
  • 2025: $214,210

So, nostalgia isn’t just remembering the past, but it’s remembering selectively, usually the good moments. In real estate, that often means focusing on lower prices, lower mortgage rates, and easier entry into homeownership.

But it often overlooks something important: what ownership actually looked like once you were in the market.

In 2016, buying a home was easier. However, here’s the part that rarely gets discussed. Once you owned, your options were more limited than now. Most homeowners didn’t have a large financial cushion tied to their home, even after years of owning, because the market was still recovering from the housing downturn. That meant fewer choices, such as less equity to tap for renovations or life changes, and less flexibility to move up or laterally.

Today, homeownership looks very different. The typical homeowner has accumulated more than $214,000 in home equity over the last 10 years. For many Millennials who bought in the late 2010s or early 2020s, that equity built faster than expected. And larger equity provides homeowners with more options, such as a financial buffer that didn’t exist at the same scale in 2016. In other words, 2016 was easier to enter — but homeownership today is far more financially powerful.

Looking ahead, while the post-2016 market made entry harder, 2026 is set to be a turning point for the housing market, with improving supply and better options for homebuyers to enter the market.