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Housing affordability remains impaired even as supply improves
The open letter to federal housing agencies and Congress says property taxes and insurance costs have risen sharply since 2019, while mortgage rates remain “precarious.”
HousingWire argues that housing affordability is still impaired even with improved supply, emphasizing that the United States has more homes available but not more “payment capacity” for buyers. The outlet notes that total housing inventory is already above five months of supply, compared with roughly six months typically considered a balanced market, and says it could take about 18 years to restore 2019 affordability if wages keep their recent advantage.
HousingWire points to rising ownership costs as a key drag on affordability. It cites property taxes up 27% since 2019 and homeowners insurance climbing by 24% to 64% since 2021, depending on location, and adds that HOA dues have risen 25% to 30%.
The outlet also warns that mortgage rates are “precarious” because they are set by the market rather than by policy announcements. HousingWire says that if rates were pushed too low or fell too quickly, they could stimulate another round of demand and home price appreciation that outpaces wage growth, worsening affordability rather than improving it.
HousingWire’s open letter proposes five actions to improve affordability in a strategic, controllable way, including optional prepayment penalties tied to lower rates, cuts to LLPA and FHA MIP, expanded eligibility, and a temporary capital gains incentive. The letter is addressed to the FHFA, HUD, the CFPB, and Congress.