U.S. — The Harvard Joint Center for Housing Studies released its 2026 State of the Nation's Housing report, which identifies persistent affordability challenges and a growing homeownership gap in the United States. Authors of the report stated, "Across the U.S., persistent affordability challenges and rising economic uncertainty are hurting housing markets."

Sales of existing homes in the United States are at three-decade lows. In 2025, the median price of a new single-family home was $417,400. That same year, the median existing single-family home sold for nearly five times the median household income, an increase from the 1990s average of 3.2 times.

Monthly mortgage payments on a median-priced home approximated $2,420 in 2025, assuming a modest down payment and a 30-year fixed rate. These payments were nearly double what they were at the close of 2020. The Harvard Joint Center for Housing Studies calculates that only 16% of renter households earned the $120,800 minimum income required to afford a median-priced home in 2025.

Affordable listings have decreased, with those accessible to households earning $75,000 or less falling from 49% of the national inventory in 2019 to 23% by March 2026, according to data from the National Association of Realtors and Realtor.com. Home prices in the United States increased by 54% between 2020 and 2022. Aggregate homeowner equity reached $34 trillion in the fourth quarter of 2025, an increase of $16 trillion since 2019.

The median first-time homebuyer was 40 years old in 2025, and first-time buyers accounted for 21% of all home purchases, according to the National Association of Realtors. The homeownership rate for households under 35 was 37% in 2026, a decline from 39% in 2022. The Black-white homeownership gap currently stands at 28.7 percentage points, which exceeds the gap recorded in 1995. The Harvard Joint Center for Housing Studies attributes reduced household formation among young adults to a weakened job market, burdensome student debt, and low consumer sentiment.

Ali Wolf, chief economist, noted the increasing difficulty of homeownership. "In the past, if you were middle class, it was almost assumed you would become a homeowner," Wolf said in 2024. "Today, the aspiration is still there, but it is a lot more difficult. "You have to be wealthy or lucky."

Why It Matters

The 2026 State of the Nation's Housing report shows a sustained decline in housing affordability and purchasing power across the United States. The data indicates that homeownership, historically accessible to a broader segment of the population, has become increasingly out of reach for many. This trend is marked by rising home prices relative to income and increasing mortgage payments, alongside a reduction in the availability of affordable listings.

The report also points to a widening homeownership gap, particularly affecting younger generations and specific demographic groups, such as the persistent Black-white homeownership disparity. These conditions are occurring alongside record levels of aggregate homeowner equity, suggesting a bifurcation within the housing market between those who already own homes and those attempting to enter the market.