The pursuit of the American Dream of homeownership has become increasingly challenging over the past decade, with home prices consistently outpacing income growth across all 50 states. This trend persisted despite the federal government allocating approximately $460 billion towards housing programs, a new analysis by the watchdog group Open The Books reveals.
The decade-long examination, spanning from 2015 to 2024, analyzed home price and household income data in conjunction with federal housing expenditures. Open The Books calculated an "Affordability Gap" for each state by measuring the difference between the percentage growth in home prices and the percentage growth in median household income. The findings indicated that in every state, home prices rose at a faster rate than incomes, widening the gap and making homeownership less attainable.
In 48 states, this affordability gap reached double digits, and 17 states experienced home price growth exceeding income growth by more than 50 percentage points. "In this case, nearly half a trillion dollars was shoveled into the states over a decade, but it offered no meaningful effect for Americans whose incomes were outrun by prices in every state," Christopher Neefus, vice president of communications for Open The Books, told Fox News Digital. He suggested that solutions must focus on addressing local regulatory hurdles, zoning restrictions, and investments.
Open The Books tallied about $460 billion in spending from the Department of Housing and Urban Development (HUD) across 18 programs aimed at housing affordability, availability, rent control, and homelessness during the specified period. The analysis found virtually no direct relationship between the amount of HUD funding a state received and the size of its affordability gap, indicating that federal spending did not translate into improved housing affordability outcomes.
In response to the report, a HUD spokesperson stated that the agency, under the Trump administration, has focused on reducing regulations, combating fraud, and empowering state and local governments to implement housing policies. The spokesperson noted efforts to uncover nearly $495 million in fraud, roll back certain policies, and assist over one million Americans in achieving homeownership. "Washington doesn’t have all the answers, which is why we’re empowering state and local leaders to advance proven solutions, cut barriers, and increase housing supply," the spokesperson added.
The report's findings coincide with broader concerns about the declining accessibility of homeownership for younger Americans. National data indicates that between 2000 and 2024, median household income increased by 99.7%, while the median sale price of a single-family home surged by 150.1%. Consequently, the median age for first-time homebuyers has risen to 40. Neefus noted that these trends suggest why younger generations may perceive homeownership as less attainable than previous generations did, emphasizing that "top-down spending won’t be the way" to restore the dream of homeownership.