Two decades ago, income growth and home prices moved somewhat together. Today, that balance is gone.
In the mid-2000s, the average household earned under $50k while homes sat below $200k. Fast forward to now: incomes are up modestly, but home prices have exploded to nearly half a million dollars.
Wages rose roughly a quarter. Home prices surged more than double.
That disconnect is crushing affordability. Around 3 out of 4 U.S. households can no longer qualify for a median-priced new home.
Higher mortgage rates add fuel to the fire. Even after recent easing, 30-year rates remain stuck around the mid-6% range far above the ultra-cheap borrowing era of pre-2022.
Supply isn’t helping either. Millions of homes are missing from the market, while existing owners are staying put, unwilling to give up their old low-rate mortgages.
The result?
Fewer buyers, fewer sellers, slowing transactions and the weakest affordability conditions on record.
This isn’t just a housing issue anymore. It’s a structural challenge for an entire generation.
