Why millions can’t afford homes anymore

Key Points:

• The 2026 "State of the Nation’s Housing" report by Harvard’s Joint Center for Housing Studies highlights severe affordability challenges, weak labor markets, and reduced household growth, with new household formation in 2025 at Great Recession levels.
• Housing cost burdens are widespread, with 24% of homeowners and roughly half of renters spending more than 30% of their income on housing; many renters face severe cost burdens, exacerbating financial strain.
• There is a significant shortage of affordable rental units, as only 35% of the 11 million extremely low-income households have access to affordable and available rentals, intensifying competition and housing insecurity.
• Homeownership is increasingly expensive due to aging housing stock requiring costly maintenance, with owners of pre-1940 homes spending about 50% more annually on repairs than those in newer homes.
• The housing crisis disproportionately affects vulnerable populations, including low- and moderate-income households and people of color, with higher rates of cost burden among Black and Hispanic homeowners compared to White homeowners.