The U.S. housing market is facing a major affordability crisis, with home prices and mortgage rates so high that sales have dropped to their lowest level in 30 years. Renting isn’t much better with rent on the rise, and affordable units are disappearing, even as nearly 850,000 more people became renters in 2024.
Over 20 million homeowners now spend more than 30% of their income on housing, driven by high prices, rising property taxes, and insurance costs. Home prices have jumped 60% in six years, with the median home now costing $412,500 which is five times the typical household income.
Builders are offering smaller homes and mortgage incentives, and new home sales have slightly increased. Experts say zoning reform and allowing more flexible housing types, like small apartment buildings and in-law units could help ease the crisis.
Read full Harvard report HERE.
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