## Why the American Dream of Homeownership Is Becoming a Relic The latest release from Harvard’s Joint Center for Housing Studies paints an unambiguous picture: what once was an exceptional post‑war prosperity is now the norm—housing affordability has slipped from a fleeting advantage to a pervasive shortfall for the majority of Americans. Decades of rising home prices, stagnant wages, and policy inertia have turned what scholars warned about half a century ago into a structural defect in the nation’s housing system. ### Key Takeaways - **Affordability has shifted from anomaly to baseline:** Recent data show that a growing share of households now spend more than 30 % of income on housing, a threshold traditionally used to signal unaffordability. - **Historical warnings proved prescient:** Researchers in the 1970s warned that only the wealthiest could keep pace with home‑price inflation; the current report confirms that prediction has materialized across income brackets. - **Supply constraints intensify the crisis:** Limited new construction, zoning restrictions, and a shortage of affordable rental units have compounded price pressures. - **Income growth lags behind price growth:** Median household incomes have risen modestly, while home values have increased at a rate several times higher, eroding purchasing power. - **Policy inertia is a core driver:** Federal, state, and local policies have failed to address the systemic mismatch between demand and supply, allowing the affordability gap to widen. - **Long‑term economic implications:** Persistent unaffordability threatens labor mobility, widens wealth inequality, and could dampen overall economic growth. - **Potential pathways forward:** The report outlines interventions such as expanding affordable housing subsidies, reforming zoning laws, and incentivizing higher‑density development. - **Regional disparities matter:** While the crisis is national, coastal metros face the steepest affordability gaps, whereas some inland markets still retain modest price dynamics. - **Demographic pressure:** Millennials and Gen Z are entering the housing market later and with heavier debt burdens, further stressing affordability. - **Urgency for coordinated action:** The authors stress that without decisive, multi‑level policy action, the affordability deficit will become entrenched, reshaping the fabric of American homeownership. [Read Full Article](https://news.ababil360.com/harvard-housing-report-shows-housing-affordability-crisis-was-never-a-guarantee/) #HousingAffordability #HarvardHousingStudy #HomePriceCrisis #HousingPolicy #EconomicInequality #AffordableHousing #UrbanPlanning #RealEstateTrends #WealthGap #newsababil360