Economics
U.S. Housing Affordability: High Costs Are Keeping Homeownership Out of Reach For Many Americans
Report summary
For many U.S. adults, homeownership is slipping farther out of reach as costs grow prohibitively unaffordable. Following rock-bottom mortgage rates during the height of the pandemic, home sales nosedived to their slowest pace in decades as the Federal Reserve raised rates in 2022 and 2023, and volumes remain subdued so far in 2024. Financing costs are not the only obstacle to buying, however: Housing prices have continued to soar as inventory remains tight, and several years of elevated inflation has left many households with insufficient savings for a down payment.
Key Takeaways
- Fewer U.S. households have been buying homes as rising prices, elevated interest rates and depleted savings keep homeownership unaffordable for many Americans.
- As home values continue to appreciate, and the hurdles inhibiting homeownership grow higher, there is a widening gap among various groups’ wealth and homebuying ability.
- With the Federal Reserve widely expected to begin cutting interest rates in September, one affordability factor—mortgage financing costs—may be poised for improvement.
Data Downloads
Pro+ subscribers are able to download the datasets that underpin Morning Consult Pro's reports and analysis. Contact us to get access.
About the author
Kayla Bruun is the lead economist at decision intelligence company Morning Consult, where she works on descriptive and predictive analysis that leverages Morning Consult’s proprietary high-frequency economic data. Prior to joining Morning Consult, Kayla was a key member of the corporate strategy team at telecommunications company SES, where she produced market intelligence and industry analysis of mobility markets.
Kayla also served as an economist at IHS Markit, where she covered global services industries, provided price forecasts, produced written analyses and served as a subject-matter expert on client-facing consulting projects. Kayla earned a bachelor’s degree in economics from Emory University and an MBA with a certificate in nonmarket strategy from Georgetown University’s McDonough School of Business. For speaking opportunities and booking requests, please email [email protected]
