Here's how hard it is to afford a home today vs. 25 years ago
- Purchasing a home in the U.S. In 2025 requires over double the share of median income compared to 25 years ago, driven by a sharp rise in median home prices.
- This increase results from home values growing nearly 500% faster than median household income since 2000, while tougher mortgage qualifications and stagnant wages limit affordability.
- Investor activity peaked in 2021, with some billionaires holding properties for tax benefits and appreciation, which contributes to reduced housing supply and higher rents.
- A 2025 executive order by President Trump targets this crisis by loosening building regulations, potentially cutting new construction costs by 25%, and increasing affordable housing on federal land.
- These measures aim to reverse affordability decline for millions as monthly payments today are nearly triple those in 2000 despite mortgage rates being about 1% lower now.
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OC Housing Report - Tim Morissette
#block_9k295iqoois { margin: 0; padding: 25px 0; } Sitting TightSince the Great Recession, significantly fewer homeowners have been selling their homes, and the higher mortgage rate environment has further slowed the number of sales. The slow pace of home sales has contributed to more homeowners remaining in their homes long-term. The days are getting longer. The temperatures are rising. Memorial Day, the unofficial start to Summer, …
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Leaning Left0Leaning Right0Center9Last UpdatedBias Distribution100% Center
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