The path to homeownership, long considered a cornerstone of the American Dream, is becoming increasingly difficult for many Americans, according to Kevin Brown, president of the National Association of REALTORS® (NAR).
Brown points to a significant decline in housing inventory and a rise in mortgage rates as primary factors contributing to this challenge. Ten years ago, approximately 1.65 million homes were available on the market, with mortgage rates around 3.7%. Today, that inventory has dropped to 1.18 million homes, while mortgage rates have climbed to over 6%. This scarcity, coupled with population growth, has made it harder for prospective buyers to find suitable properties.
These market conditions have resulted in a record high median age of 40 for first-time homebuyers, according to NAR's 2025 Profile of Home Buyers and Sellers. Brown notes that this trend is personal, as he witnesses the struggles of young people trying to enter the market.
Addressing Affordability Barriers
To address these obstacles, Brown advocates for a comprehensive approach that tackles various aspects of the housing market. This includes increasing housing supply, reforming zoning restrictions, managing rising insurance costs, and streamlining federal processes that can delay construction.
NAR has supported legislation like the 21st Century ROAD to Housing Act, which aims to provide communities with tools and resources to plan and build for growth. The act, comprising nearly 50 individual bills, seeks to update financing options for manufactured and rural housing and simplify federal permitting processes.
Beyond legislative efforts, NAR is also actively opposing policies that could exacerbate affordability issues. The organization has spoken out against rent control measures, arguing that they discourage investment and limit housing supply. They also advocate against what they term a "Home Equity Tax," where current capital gains exclusion levels, unchanged for nearly 30 years, are not indexed to inflation. NAR contends that modernizing these thresholds would help unlock existing housing supply and improve opportunities for buyers.
The Economic Importance of Homeownership
Brown emphasizes the broader economic significance of homeownership. He notes that real estate constitutes nearly one-fifth of the U.S. GDP, and each home sale contributes approximately $125,310 in local economic activity, generating two jobs. Homeownership is seen as a foundation for financial stability, wealth building, and community well-being.
Despite the current challenges, Brown expresses optimism about the future of homeownership, stating that making it more accessible and affordable is achievable.