Severe burden cases rising
Nearly 60% of the increase in newly burdened homeowners since 2019 came from those spending over half their income on housing, showing that affordability challenges have grown more common and more severe.
The analysis indicates that housing affordability has become particularly challenging for homeowners at different life stages. Young homeowners face barriers as they attempt to enter the housing market, while older homeowners struggle to maintain their current properties amid rising costs.
Broader housing market context
The findings align with broader housing market trends documented by the Harvard Joint Center for Housing Studies. Their 2024 State of the Nation’s Housing report shows that both homeowners and renters are struggling with high housing costs nationwide.
Home prices reached new all-time highs in early 2024, with the US home price index 47% higher than early 2020 levels, as of June 2024. The median sales price has climbed to about five times the median household income, making homeownership increasingly difficult for many Americans.
The rental market has also seen significant pressure, with rents up 26% nationwide since early 2020. Half of all renter households—22.4 million in total—spent more than 30% of their income on housing and utilities as of 2022.
