WASHINGTON—Housing affordability has emerged as the top economic concern for many younger Americans, underscoring the growing financial pressures facing prospective homebuyers as home prices and mortgage rates remain elevated, according to reporting by Mortgage Professional.
Citing a CNBC All-America Economic Survey conducted July 8–12 among 1,000 registered voters, Mortgage Professional reported that housing affordability ranked as the single most important issue for voters ages 18 to 34, surpassing concerns over food costs, immigration and protecting democracy. Housing also topped the list of concerns among men ages 18 to 49.
The findings come as homeownership remains out of reach for many Americans despite modest improvements in affordability driven by wage growth.
Record $440K Price
According to the National Association of Realtors, the median existing-home price reached a record $440,600 in June, up 1.8% from a year earlier. Using a median home price of $446,400 and a 6.57% mortgage rate, NAR estimated that a household would need annual income of $109,152 to qualify for a mortgage, a threshold that remains difficult for many first-time buyers to meet.
The housing affordability challenges extend beyond homeownership. Mortgage Professional cited a June report from Harvard University’s Joint Center for Housing Studies showing that 49% of renter households spend more than 30% of their income on housing. Of the 22.7 million households considered cost-burdened, 12.1 million devote more than half of their income to housing expenses.
Political Implications
The publication also highlighted the political implications of the housing market.
According to Mortgage Professional, Congress approved bipartisan legislation in June aimed at increasing housing supply, reducing the cost of renting and buying homes and limiting private equity’s role in the residential housing market. Although President Donald Trump declined to sign the measure, calling it “a big yawn,” it became law without his signature through a procedural process.
The CNBC survey found that 38% of respondents said they trust Democrats more than Republicans to address housing affordability, compared with 32% who favored Republicans. Among voters who identified housing as one of their top two concerns, Democrats held a wider advantage, 53% to 32%.
Changes in Buyer Behavior
Mortgage professionals are also seeing changes in buyer behavior, according to Mortgage Professional. Matt Gouge, a mortgage broker and founding partner of UMortgage, told the publication that prospective buyers who had previously delayed purchasing homes are reconsidering their timing as affordability concerns increasingly intersect with broader economic and political issues.
Meanwhile, mortgage costs continue to rise. The average interest rate on a 30-year fixed-rate mortgage increased to 6.55% for the week ending July 16, the highest level in nearly a year, according to Mortgage Professional.
The publication also cited the CNBC survey showing that 60% of respondents disapprove of the Trump administration’s handling of the economy, while 68% disapprove of its management of inflation and the cost of living, making housing affordability a central measure of broader economic sentiment.
