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Report finds US housing demand depressed as costs hit record highs
Fox Business • • business
Key Points:
- The U.S. housing sector remains subdued in early 2026 due to high costs suppressing demand, with existing home sales near their lowest levels in three decades, according to Harvard's Joint Center for Housing Studies.
- New home sales are steady, but new construction starts fell 1% over the past year, driven by a 7% decline in single-family starts, while rental retention rates increased and new occupancies declined.
- Homeownership growth has slowed significantly, causing homeownership rates to decline for the second consecutive year, and rental growth has also weakened amid economic uncertainty and declining consumer confidence linked to factors like the Iran war.
- Median home prices for new and existing homes have surpassed $400,000, with existing home prices rising 54% since 2020, now about five times the median income, far exceeding the historical ratio of three times income.
- Mortgage rates above 6% have increased monthly payments on a median-priced home to $3,100 by late 2025, requiring an income over $120,000 to afford, nearly double the income needed in early 2020, contributing to affordability challenges.
