2025 Housing Affordability Crisis: Gradual Improvements Amid Persistent Challenges
The housing market in 2025 remained constrained by affordability issues, though marginal improvements emerged. Mortgage rates saw a modest decline, and an uptick in listings provided slight relief to buyers. Experts anticipate further rate drops in 2026, but the fundamental shortage of housing supply will likely prolong affordability struggles.
Household budgets and broader economic dynamics continue to feel the strain. Limited access to homeownership risks slowing construction activity, stifling wealth accumulation for younger generations, and influencing monetary policy decisions. The path to recovery appears gradual—flat prices, rising incomes, and incremental rate adjustments may eventually ease the crisis, but no swift resolution is in sight.
