The gap between housing costs and household incomes in America's largest cities has reached historic levels, according to a comprehensive analysis by the National Association of Realtors released this week.
The report found that in 40 of the 50 largest metropolitan areas, the median home price now exceeds six times the median household income — a threshold that economists consider severely unaffordable.
Causes and Consequences
A combination of limited housing supply, elevated mortgage rates, and investor activity in residential markets has pushed prices beyond the reach of many first-time buyers.
Young adults are delaying homeownership, family formation, and wealth building, creating ripple effects that economists warn could reshape the American economy for decades.
