United States of Housing

Although the median new and existing home prices in the U.S. declined year over year, that is only part of the story. Housing costs still exceed 30% of monthly incomes. Moreover, across several key indicators, including new housing permits, homeownership rate, and first-time buyer data, the nation’s housing market took a step backward in 2025.

Homeownership in America declined for the second straight year, with 65.2% of Americans owning their own home.

At a time when America needs more housing, residential permitting continues to move in the wrong direction. Permits fell for a fourth consecutive year in 2025, declining to 1.431 million units. Housing competitions, a lagging indicator, also decreased 7.9% in 2025 to 1.498 million units, as the industry worked through the backlog of previously permitted projects.

Underscoring concerns over homeownership access in America, polling and data show the barriers to the American Dream are growing. The prolonged housing shortage and subsequent affordability crisis is holding back homeownership. According to the National Association of Realtors, the average age of the first-time homebuyer in America rose to 40, an all-time high. At the same time, the share of first-time buyers reached a new low of 21%.

Housing affordability in the United States, for both existing and new homes, is a challenge. The median income in nearly every state cannot afford the median existing home, let alone the median new home price.