U.S. Housing at a Breaking Point
The Harvard Joint Center for Housing Studies has released its 2025 State of the Nation’s Housing report—and the picture is grim. The findings point to a worsening affordability crisis, demographic upheavals, and market imbalances that threaten millions of renters and homeowners alike.
Affordability in free fall: Since 2019, home prices have jumped 60%, while existing home sales have sunk to a 30-year low. Nearly half of all renters are now cost-burdened, and more than one in four spend over half their income on rent. Rising property taxes and insurance premiums only add to the squeeze.
Shifting demographics: Household growth among adults under 45 is stalling. Today, older adults make up nearly a third of all households. Combined with declining birth rates and reduced immigration, this shift is reshaping demand in ways the market isn’t ready for.
Market distortions: Despite a recent surge in multifamily construction, much of the new supply skews toward higher-cost units, leaving affordable options scarce. With construction slowing, pressure on the rental market could intensify in the years ahead.
Unequal burdens: Black, Hispanic, and multiracial renter households continue to face far higher affordability challenges than their white counterparts—deepening long-standing racial disparities.
Policy crossroads: The report stresses that without bold federal action and state and local leadership, these trends will accelerate. Innovative housing solutions and major investments are needed to pull the nation back from the brink.
Taken together, the data show a housing market under extreme stress—one where climate disasters, high costs, and demographic shifts collide. Unless policymakers move quickly, the crisis will only deepen.
