A housing shortfall, record home costs and cuts to subsidies are intensifying the US affordability crunch.
Of the various dimensions of the affordability crisis weighing on US families, housing probably weighs heaviest.
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The typical home price has risen above five times the annual income of the typical family. The monthly cost of owning a home has hit record highs.
The US faces a housing shortfall of millions of homes. But builders are not rushing to meet the shortfall.
The supply of new homes declined over 14% in May, compared to May of 2025.
Moody’s Analytics expects single-family and multifamily residential investment to contract every year between now and 2030.
Congressional Action Stalled
Congress stepped up to the challenge in a bipartisan move.
For the first time in 30 years, it passed legislation that would accelerate homebuilding, relaxing environmental reviews and other federal regulations that stymie housing development.
Then, Donald Trump said no.
He wouldn’t sign the legislation until Congress passed a bill to limit mail-in voting and require voters to submit proof of citizenship.
The housing legislation is, by comparison, “of minor importance”, he said.
Broader Economic Pressures
Almost two years into the second Trump administration, it is evident that the president’s abiding objective has been to empower and enrich himself and his offspring.
It is nonetheless surprising how every one of Trump’s policy initiatives has sabotaged some core constituency.
Launching a war against Iran before figuring out its objectives or how it might unfold probably takes the cake.
