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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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Here's how hard it is to afford a home today vs. 25 years ago

A new report collected data on mortgage rates, home prices, and household incomes over 25 years to see how much harder it is to buy a home today than it was in 2000. Here's what the data found.

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WFLD broke the news in Chicago, United States on Tuesday, May 13, 2025.
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