A new analysis reveals that homeownership is becoming increasingly unattainable for most U.S. families due to the widening gap between earnings and home prices.
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More than 75% of homes across the country are deemed unaffordable for the typical household, with housing costs exceeding 30% of income.
The U.S. needs 4.7 million housing units to keep up with demand, but high home prices and a shortage of affordable housing have made homeownership difficult for many Americans.
In 2024, the median household income in the U.S. was nearly $84,000, far below the $113,000 needed to buy a typical home costing around $435,000.
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In some of the country’s priciest cities like New York, San Francisco, and Seattle, households need to earn at least $200,000 a year to afford the median-priced home.
As of 2025, about 65% of U.S. households owned their own home, down from a peak of over 69% in 2004, with brighter outlooks for home construction in the South and West compared to the Northeast and Midwest.
Experts emphasize the importance of homeownership for building wealth, but more people are finding the path to that goal elusive.
While some regions show promise with increased home construction, overall homeownership rates have declined, with only 24% of housing sales in 2025 made by first-time buyers.
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