Ryan Serhant Says It’s Not a Housing Crisis—It’s an Affordability Crisis. Do We Agree?
Ryan Serhant—the powerhouse broker, reality TV star, and CEO of SERHANT.—recently shared his take on the real estate market, and his message was clear:
“I don’t think there actually is necessarily a housing crisis the way you see and you read about it. I think there’s an affordability crisis.” — Ryan Serhant
Translation? The market isn’t crashing, it’s just pricing a lot of people out.
So, is he right? And what does this mean for buyers and sellers, especially here in Orange County? Let’s break it down.
Affordability Is a Problem—But So Is Inventory
We partially agree with Serhant. Yes, affordability is a massive challenge right now. But in Orange County, affordability and inventory shortages go hand in hand.
Even high-earning buyers are struggling to find homes that fit their needs. We’re working with a first-time homebuyer making almost $200,000 a year with an 800+ credit score, and the most she’s comfortable spending is $600,000 (based on her income vs the total monthly nut of owning a home). What does that get her in OC? A one-bedroom condo in most cities.
And that’s not just a feeling, it’s in the numbers:
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The annual household income needed to buy a typical U.S. home is now $92,538, a 79% increase in just five years.
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In OC, prices are still high, and with mortgage rates hovering around 7%, that monthly payment is a serious hurdle for many buyers.
Even if some homes hit the market, they aren’t necessarily affordable for the buyers who need them most.
Are Buyers Getting Deals?
Yes… but it depends on the home.
Affordability is still a major issue, but for buyers who can buy, there’s some good news:
✅ Fewer bidding wars → Buyers actually have time to think before making an offer.
✅ Longer days on market → More room to negotiate.
✅ Some homes are sitting unsold → There are opportunities to get below asking price.
That said, it’s a mixed bag. In nearly every OC city, 50% of homes are still selling above asking price, while the other half are at or below. But the number of homes selling for less than asking is growing, which means more buyers are negotiating successfully.
Is Now a Good Time to Buy?
It’s impossible to time the market perfectly. Our advice? Buy when you’re financially ready, not when the headlines say so.
If you can afford the home no matter what happens in the economy and plan to stay there for 8+ years, buy the home. We’ve never heard someone regret buying and holding a home, but we’ve heard plenty of regrets from people who sold too soon.
Why Sellers Aren’t Listing
So if affordability is so tough, why aren’t home prices dropping? Simple: Sellers aren’t selling.
While this is getting a little better compared to last year, sellers in OC still aren’t eager to list their homes. And we get it, why would you trade in your 3% mortgage for 7%+ unless you had to?
The people making moves right now are those with a need to sell rather than just a want to sell. We call them the D’s of Real Estate:
Diapers – Growing families needing more space
⚰️ Death – Inherited properties that need to be sold
Divorce – A home that needs to be split
Diploma – Job relocations or moving for school
Debt – Financial reasons forcing a sale
Diamonds – Newlyweds or couples merging households
For other sellers? It’s all about the numbers. They’ll only list if:
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They know they can sell for top dollar.
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They have a clear plan for where they’re going next.
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They know what they’re doing with the proceeds.
So, Is Serhant Right?
For the most part, yes. There’s no housing crisis, but there’s a huge affordability and inventory challenge.
That said, real estate is never one-size-fits-all. Here’s what OC buyers and sellers really need to know:
For Buyers:
⏳ Be patient. Wait for the right home, don’t rush into something that doesn’t fit your needs.
Get pre-approved. Know your budget before you start house hunting.
Have a plan. Work with a real estate professional (ahem, us!) to navigate the market strategically.
For Sellers:
If you’re on the fence, play out the hypotheticals.
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If you sold today, where would you go?
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What does your home need to be market-ready?
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How much could you realistically sell for, and what would you walk away with?
If you do decide to sell, be ready.
1️⃣ Know your next move… have a plan before listing.
2️⃣ Prepare your home… clean, make necessary repairs, and stage it well.
3️⃣ Work with a pro… marketing your home correctly is more important than ever.
Final Thoughts
Ryan Serhant says the market isn’t crashing, it’s just getting harder for buyers to afford homes. And we’d say he’s mostly right, but in Orange County, inventory challenges are just as big of an issue.
No matter what the headlines say, opportunities are still out there if you know where to look.
Thinking about buying, selling, or just trying to make sense of the market? Let’s chat. We’ll break down your situation, run the numbers, and create a game plan that works for you.
DM us or give us a call, we’d love to help!
