Income required to afford a median-priced home has almost doubled since 2020, report finds

A new report on the US housing sector finds that activity remains subdued through the first part of the year as high costs suppress demand.The Joint Center for Housing Studies of Harvard University released its annual “State of the Nation’s Housing” report on Wednesday, which found that existing home sales remain near the lowest level in three decades that was first reached in 2023.Sales of new homes remained relatively unchanged, while rental retention rates rose and new occupancies declined.New construction starts dipped one percent over the last year, driven by a seven percent decline in single-family starts.“Although supply shortages are still a major concern, depressed demand became a headline in housing over the past year,” the report said, noting slower growth in the number of homeowner households as well as the number of renters compared with a year ago. The rate of growth of homeowner households declined by half and caused homeownership rates to decline for the second straight year.

Additionally, the year-over-year increase in the number of renters in the first quarter of 2026 was less than half of what it was a year earlier.Economic uncertainty has weighed on housing demand, with employment growth slowing from a gain of 1.5 million in 2024 to just 116,000 in 2025.Morning Report delivers the latest news, videos, photos and more.

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Never miss a story.Consumer confidence dropped by more than 20 percentage points in 2025 and fell further in the first part of 2026 due to the Iran war, reaching an all-time low in April.“Without a job, graduates are less likely to form a new household or move to a new region,” the report said.

“Without confidence in employment, families are less likely to move or make a big purchase like a house.”High costs and the lack of affordable housing options...