According to a new report presented this week by the Joint Center for Housing Studies at Harvard University, called “State of Housing in the Nation”, it highlighted that the average price of existing homes in the United States increased 54% since 2022.

According to the analysis, the cost of new or used properties currently exceeds $400,000; This means that they are five times above the average income, which continues to drive future buyers away from the market.

Although activity has remained subdued during the first quarter of this year, the affordability crisis continues to dampen demand. “The shortage of supply continues to be a major concern, low demand became main news in the real estate sector during the last year,” the report's analysts point out.

While new home sales have remained stable, the number of new owners has been slower than in previous years, and although rental retention rates have increased, the number of renters has also decreased compared to last year.

For its part, the construction sector has not given good signs either; According to the report, new construction starts fell 1% this year compared to 2025, generated by a 7% drop in the construction starts of single-family homes.

A predominant factor in the research was the economic uncertainty among American households due to a high cost of living, which has slowed the demand for housing, and this has led to the number of households owning their own home being reduced by half. "Without employment, graduates are less likely to start a new household or move to another region. Without confidence in employment, families are less likely to move or make a major purchase like a home," the report states.