SPEAKIN’ OUT NEWS
A new national analysis shows that homeownership — long viewed as a cornerstone of the American Dream — is slipping further away from most U.S. families. According to personal finance firm Bankrate, more than 75% of homes across the country are now unaffordable for the typical household, a stark reminder of widening financial inequality and the country’s deepening housing crisis.
Bankrate defines a home as affordable when annual housing costs do not exceed 30% of household income. Today, only a “sliver” of the housing market fits that standard, said Bankrate data analyst Alex Gailey.
“That’s when homeownership starts to feel less like a common middle-class milestone and more like a luxury,” Gailey told CBS News.
High housing costs, driven by a shortage of affordable homes and years of underbuilding, are squeezing families nationwide. Experts note that owning a home remains one of the most reliable ways for Americans to build wealth — but the rising cost of entry is leaving millions behind.
“It’s left the average American household with far fewer homes than they can afford,” Gailey said. “And we haven’t been building at the rate we should be.”
The data underscores the shifting reality: Only 24% of home purchases last year were made by first-time buyers, compared to 50% in 2010, according to the National Association of Realtors. Zillow estimates the U.S. needs 4.7 million additional housing units to meet current demand.
Meanwhile, household earnings lag far behind what is needed to purchase a typical home. In 2024, the median U.S. household income was nearly $84,000 — well below the $113,000 needed to afford a home at today’s median price of $435,000.
In cities like New York, Seattle and San Francisco, families must earn more than $200,000 just to buy a median-priced home.
As of 2025, about 65% of U.S. households owned their home, down from a 2004 peak of 69%.
Still, there are glimmers of hope: Stronger housing construction in parts of the South and West — fueled by better tax incentives and more flexible building policies — could ease pressure in coming years. And forecasters expect mortgage rates to dip slightly to 6.3% in 2026, offering modest relief for first-time buyers.