65+ Housing Affordability Statistics: Behind the Price Surge (2025)

We’ve compiled over 65 essential housing statistics to illuminate the unprecedented surge in housing prices and affordability challenges in 2025. 

Drawing from authoritative sources such as REsimpli’s survey data, and other authoritative sources to build credibility, there are keen insights that can be made on housing affordability this year.

Top Housing Affordability Statistics (Editor’s Pick)

Housing affordability continues to be a defining challenge in today’s real estate market, shaping how people approach homeownership. These statistics illuminate current market sentiments and emerging trends, showing how buyers are adapting their strategies to overcome affordability barriers in 2025.

• 45.58% of people are mostly concerned about high property prices in 2025.
• 33.67% of people think that the housing market is worsening in 2025.
• 25.50% of people believe rising mortgage rates will be the primary concern for housing affordability in 2025. 
• 11.50% of people believe down payment requirements will be the primary concern for housing affordability in 2025. 
• A household earning the local median income can afford a home in more than 60% of U.S. counties, down from 90% five years ago. 
• 72.58% of the respondents would opt to increase their mortgage terms to be able to afford a home in 2025.
• The homelessness response system added 36,737 Permanent Supportive Housing (PSH), Rapid Re-Housing (RRH), and Other Permanent Housing (OPH) units between 2022 and 2023.
• 56.00% of people would opt for suburban housing.
• 80.42% of people would spend significantly on renovations for a property if they can get an affordable home. 
• 67.42% of respondents believe modular/small homes will become mainstream. 

Affordability Metrics & Trends

Understanding how housing affordability has shifted over time is crucial for both policymakers and potential homebuyers. These statistics reveal the stark changes in housing costs relative to income across different regions, highlighting the growing challenges in the housing market since the early 2000s.

• The Housing Affordability Index value in the United States plummeted in 2022, surpassing the historical record of 107.1 index points in 2006. 
• In 2023, the housing affordability index measured 98.1 index points, making it the worst year for homebuyers since the start of the observation period. 
• Median house prices are now 6 times the median income, up from 4-5 times 20 years ago. 
• The ratio of median rents to median income rose from 25% to 30%. 
• In San Francisco, the ratio of house price to median income exceeds 10. 
• Housing affordability fell in the United States, the United Kingdom, Australia, Canada, Germany, Portugal, and Switzerland – on average, less affordable than during the 2007-08 housing bubble. 
• In the US, the housing affordability index plunged from about 150 in 2021 to the mid-80s by 2024. 
• A household earning the local median income can afford a home in more than 60% of U.S. counties, down from 90% five years ago.
• 72.58% of the respondents would opt to increase their mortgage terms to be able to afford a home in 2025. 
• 45.58% of people are mostly concerned about high property prices in 2025.
• 33.67% of people think that the housing market is worsening in 2025. 
• 25.50% of people believe rising mortgage rates will be the primary concern for housing affordability in 2025. 
• 11.50% of people believe down payment requirements will be the primary concern for housing affordability in 2025. 
• 17.42% of people believe that property taxes and maintenance costs will be the primary concern for housing affordability in 2025.
• 62.67% of people believe urban housing will become more affordable in 2025. 
• 61.5% of people believe that institutional landlords will affect people’s purchasing ability.

Sources: REsimpli, NBC News, IMF, Harvard University’s Joint Center for Housing Studies, Econofact

Housing Market Conditions

Current housing market conditions provide an essential context for understanding affordability challenges in today’s environment. These statistics reveal key shifts in housing inventory, construction trends, and price movements, showing how structural changes in the market are affecting housing accessibility across the United States.

• As of September 2024, 78.9% of local markets had fewer active listings than in September 2019, but 92.2% had more listings than in September 2023. 
• The Federal Housing Finance Agency’s House Price Index showed a 57.8% increase in home prices from July 2019 to July 2024. 
• 23.5% of new single-family homes built in 2023 were 3,000 square feet or larger, compared to 20.3% in 2004.
• 438,300 multifamily housing buildings (5+ units) were completed in 2023, the highest number since 1987. 
• The sales price of existing single-family homes in the U.S. has increased year-on-year since 2011 and reached $389,000 in 2023. 
• Nationwide housing inventory has decreased by more than 30% since 2019. 
• Less than a quarter of new homes were under 1,800 square feet in 2021, compared with 37% in 1999. 
• The U.S. is the only major country where the housing stock grew more slowly than the population between 1995 and 2020. 

Sources: PewResearch, Aziz Sunderji, Harvard University’s Joint Center for Housing Studies, Statista

Mortgage & Financing

Mortgage rates and financing conditions play a pivotal role in determining housing accessibility for millions of Americans. These statistics examine key trends in interest rates, down payments, and mortgage prevalence, illustrating how financing dynamics impact homebuyers’ ability to enter and navigate the housing market.

• The average 30-year mortgage rate peaked at 7.79% in late October 2023 and dropped to 6.54% by late October 2024. 
• Between the second quarter of 2022 and the end of 2023, the “lock-in” effect led to 1.33 million fewer home sales. 
• Almost 39.3% of households (51.6 million) carry mortgages, according to 2023 ACS estimates. 
• The average interest rate on a 30-year fixed mortgage fell from 3.72% in early 2020 to 2.65% in early 2021 during the COVID-19 pandemic.
• The affordability estimate assumes a 20% down payment on a 30-year mortgage, with monthly payments not exceeding 30% of household pretax income. 

Sources: PewResearch, NBC News

Cost Burden & Economic Impact

The financial strain of housing costs on household budgets has reached unprecedented levels across America’s communities. These statistics reveal the growing number of cost-burdened households and the disproportionate impact on different income groups, showing how housing expenses are reshaping economic stability for both renters and homeowners.

• Cost-burdened households (those spending more than 30% of their income on housing) are most concentrated in California. 
• Among homeowners earning $35,000-$49,000, about 40% are cost-burdened. 
• The share of cost-burdened renters in the $35,000-$49,000 income range increased from under 40% in 2010 to over 60% today. 
• The cost of housing has increased by $5,000 per year (in 2021 dollars) since 1984.
• In 2021, 19 million homeowners (22.7%) were cost-burdened—the highest level since 2013. 
• The number of cost-burdened renters reached an all-time high: 21.6 million households (49%). 
• In total, 31.8% of all households (40.6 million homeowners and renters) were cost-burdened in 2021. 

Sources: Harvard University’s Joint Center for Housing Studies, Econofact, PewResearch

Homelessness & Housing Insecurity

The extreme consequence of housing affordability challenges is the growing crisis of homelessness across America’s communities. These statistics document the alarming rise in homelessness across different demographics and regions, highlighting how housing instability is affecting an increasingly diverse population of Americans.

• A record-high 653,104 people experienced homelessness on a single night in January 2023. 
• In 2023, a record high 256,610 people (39.3% of all people experiencing homelessness) were unsheltered. 
• From 2019 to 2023, the number of people who entered emergency shelter for the first time increased by more than 23%. 
• Veterans experiencing homelessness increased by 7% since the previous year. 
• Chronically homeless individuals increased by 12% since the previous year. 
• Seven states (California, New York, Florida, Washington, Texas, Oregon, and Massachusetts) account for 63% of people experiencing homelessness. 
• One-fourth of the homeless population is concentrated in New York and Los Angeles.
• Approximately 61% of people experiencing homelessness identify as men. 
• Homelessness among people identifying as women has increased 12.1% since 2022 and 11.4% since 2015. 

Sources: National Alliance to End Homelessness, HUD

Market Demographics

Understanding the evolving demographics of homebuyers and their preferences is crucial for predicting future housing market trends. These statistics reveal shifting generational patterns and lifestyle priorities, demonstrating how changing population dynamics are reshaping housing demand and preferences across America.

• 70% of millennial homebuyers are first-time buyers. 
• The number of Americans over 65 has quadrupled from 15 million in 1960 to 60 million today.
• New household formation nearly doubled in recent years, increasing from 1 million per year (2015-2017) to nearly 2 million per year. 
• The number of first-time homebuyers starting a mortgage in 2022 declined 22% from the previous year.
• 62.83% of people looking to buy a new home are seeking lifestyle changes. 
• 65.00% of people think cultural shifts will significantly impact the housing demand. 
• 56.00% of people would opt for suburban housing. 
• 80.42% of people would spend significantly on renovations for a property if they can get an affordable home.
• 67.42% of respondents believe modular/small homes will become mainstream. 
• 63.92% think economic factors and rising interest rates will impact home purchases in 2025. 

Sources: REsimpli, Harvard University’s Joint Center for Housing Studies, AARP, Yahoo Finance

Policy & Solutions

Policy interventions and innovative programs are emerging as critical tools in addressing the housing affordability crisis. These statistics highlight recent government initiatives and support programs, showing how public policy is evolving to tackle housing accessibility challenges at federal, state, and local levels.

• HUD’s new $85 million PRO Housing program will soon offer competitive grants to help states and localities address their own barriers to affordable housing. 
• The homelessness response system added 36,737 Permanent Supportive Housing (PSH), Rapid Re-Housing (RRH), and Other Permanent Housing (OPH) units between 2022 and 2023. 
• The newly created Inflation Reduction Act will soon offer substantial energy-efficiency rebates and solar tax credits for lower-income homeowners. 
• Some states and localities have created initiatives providing down payment assistance to first-generation homebuyers and descendants of families excluded from homebuying opportunities. 

Sources: Harvard University’s Joint Center for Housing Studies, National Alliance to End Homelessness

Geographic Variations

Housing affordability challenges vary dramatically across different regions of the United States, creating distinct local markets with unique pressures and trends. These statistics examine the geographic disparities in home prices, cost burdens, and market dynamics, revealing how location significantly influences housing accessibility and affordability.

• Maine had the highest state-level house price index increase (82.3%) between Q2 2019 and Q2 2024, while Washington, D.C., had the lowest increase (22.6%). 
• Among the 100 largest metro areas, Miami-Miami Beach-Kendall, FL, saw the biggest five-year increase in house price index (95.0%) from Q2 2019 to Q2 2024. 
• Home prices in Steamboat Springs, Colorado, increased 155.5% from $433,500 in August 2019 to $1,107,500 in August 2024. 
• Cost burdens were prevalent in high-rent markets such as Miami (61% of renters) and San Diego (57%).
• Even in less costly metro areas, cost burdens were significant: New Orleans (55% of renters), Baton Rouge (55%), and Memphis (52%). 
• In 2007, 51% of people experiencing homelessness were in urban areas; in 2023, this increased to 59%. 
• Remote work has increased housing demand and home prices while decreasing commercial property values, leading to the rise of “Zoom Towns”.

Sources: Harvard University’s Joint Center for Housing Studies, NBER, National Alliance to End Homelessness, PewResearch

Conclusion

The 2025 housing market faces severe affordability challenges, with house prices at 6x median income and over 40 million cost-burdened households, forcing Americans to seek alternative solutions like longer mortgages and modular homes. These pressures are reshaping traditional approaches to housing and homeownership. As policy reforms and market innovations emerge, we may see a fundamental transformation in how Americans access and think about housing.