Housing affordability in the United States has reached its worst level on record, with the median home now requiring more than 40% of median household income for mortgage payments. The crisis is forcing millions of would-be homeowners to remain renters indefinitely.

The combination of home prices that rose sharply during the pandemic and mortgage rates that remain elevated near 7% has created an unprecedented squeeze. First-time buyers, who historically drove the market, have been largely priced out.

Economists warn that the lack of affordability is contributing to declining birth rates, delayed family formation, and growing wealth inequality between homeowners and renters.