9 Facts about the Housing Affordability Crisis in America

Affordable housing is a growing issue as lawmakers push for solutions. California Governor Gavin Newsom has invested $40 billion in affordable housing and has plans to build a staggering 1 million units by 2030. Housing mandates, however, have remained a topic of contention. Home prices hit a record high in late spring of 2024. Join us in this slideshow as we take a closer look at the current looming housing crisis.

Prices Are Rising Nationwide — Prices climbed in all 20 metro areas tracked, with New York leading at 9.4%, followed by San Diego and Las Vegas.

Housing Shortage Worsened by Multiple Factors – Years of under-building, high mortgage rates, and expensive materials have deepened the housing shortage. Sellers with low pandemic-era rates are reluctant to list homes.

Mortgage Rates Likely to Stay High in 2024 – Economists predict mortgage rates will remain elevated throughout 2024, easing slightly later in the year. Despite this, a major national price drop is unlikely.

Expert Perspective on Price Trends – Bright MLS chief economist Lisa Sturtevant said, “Despite an easing of home prices in the second half of 2024, there is no evidence to suggest that we will see a major home price drop nationally.”

Nationwide Gains Across 20 Markets – Brian Luke, head of commodities, real and digital assets at S&P DJI, noted, “All 20 markets observed annual gains for the last six months. The last time we saw that long a streak was when all markets rose for three years consecutively during the COVID housing boom.”

California’s Aggressive Housing Policies – Gov. Gavin Newsom said, “No more excuses. California is taking action to fix the decades-long homelessness, housing, and mental health crises. These new laws — paired with the state’s unprecedented resources — will deliver more housing, get people off the streets, and provide life-changing support that will benefit all Californians.”

Legal Debate Over Housing Mandates – Jamie E. Wright, founder of The Wright Law Firm, explained, “The debate delves into the age-old struggle between state authority and local autonomy surrounding decision-making.”

State vs. Local Control in Affordable Housing – Attorney Raul Gastesi said, “I believe that the mandates are constitutional so long as they are mandated by the state legislature and not the courts.” He added, “The state legislators all too often believe that the local governments are exacerbating the housing shortage with local ordinances and zoning restrictions, including land use rules that make it extremely costly and difficult to construct multifamily housing.”