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Homebuyers in New England saw their buying power increase last month, partially due to the improving interest rate environment.

The number of affordable homes in Greater Boston increased by 51.2 percent year-over-year to 1,296 homes in January 2026, according to a new analysis by economists at listings portal Zillow. In Greater Hartford, the number of affordable homes increased by 4.9 percent to 573 homes in January.

Additionally, Greater Boston residents saw one of the largest increases in buying power across the country – $46,390 – in raw dollar terms. Greater Hartford residents’ buying power increased by $30,476. The study did not cover any other New England metro areas.

The company calculated the number of affordable homes and buying power by setting the parameters that a median-income household would spend no more than 30 percent of its income on the monthly mortgage payment, excluding taxes and insurance. It also presumes a 20 percent down payment, traditional for non-first-time buyers.

Across the country, a median-income household can afford a $331,483, which is $30,000 more than in January 2025. The number of affordable homes also increased by 22.5 percent to 446,982.

“A more than $30,000 gain in buying power is meaningful for households that have been stretched thin by high rates. It can mean the difference between settling and choosing,” Zillow senior economist Kara Ng said in a statement. “That doesn’t suddenly make this market affordable for everyone, but it does crack open doors that had firmly shut when rates peaked.”

The average 30-year fixed-rate mortgage interest rate ended January at 6.1 percent and dropped to 6.01 percent as of Feb. 19, according to The Federal Reserve Bank of St. Louis and mortgage-buyer Freddie Mac. Mortgage rates sat at 6.85 percent at roughly the same time in 2025.