Price is Just One Part of “Affordability”

The Insight

The constraint isn't the mortgage - it's the margin.

The binding constraint for many first-time buyers isn’t whether they can qualify for a mortgage. It’s whether they have enough financial margin to compete once they’re in the market.

Despite buying lower-priced homes, Black buyers operate with far less discretionary income, limiting their ability to absorb inspections, appraisal gaps, repairs, or delays.

Among first-time homebuyers in St. Louis:

Non-Black singles have more discretionary income than Black couples, even with two earners.

Why It Matters

Discretionary income determines:

• ability to save for a down payment

• capacity to cover closing costs

• resilience to inspections, repairs, or appraisal gaps

Lower discretionary income reduces competitiveness—even when buyers are otherwise “qualified.” 

👉 See the full analysis in the St. Louis REALTORS® Reimagining St. Louis report.