The Housing Industry: A Nexus of Economic and Political Controversy

Strategic Insights -

The housing industry has emerged as a critical arena of economic and political contention in the US, with factors like affordability, availability, and investor control pushing housing out of reach for many Americans, particularly younger generations. The median price of a home sold in the US was $446,766 in June, with 75% of Americans unable to afford the median home, according to the National Association of Realtors and the National Association of Home Builders. This growing unaffordability has contributed to a generational breakdown in views of the housing system, with everyone under 40 believing that the system is broken.

Key Takeaways:

  • The median age of first-time homebuyers in the US has increased to 38, from 29 in the 1980s, highlighting the growing unaffordability of housing for younger generations.
  • The median price of a home sold in the US was $446,766 in June, with 75% of Americans unable to afford the median home.
  • Small and mid-sized investors have been buying more properties than ever, pushing investor control of new family homes to 30%, the highest share on record.
  • The constrained supply of new homes on the market in the US is a major contributor to the problem of housing unaffordability, driven by factors like zoning issues, Nimbyism, and tariff-related hikes in the cost of building materials.
  • The number of renters receiving refunds for illegal practices by Invitation Homes, one of the largest institutional buyers of single-family homes, was over 40,000.
  • Invitation Homes settled with the Federal Trade Commission last year, paying $48 million in refunds to renters for illegal practices.
  • Real rent costs grew at its fastest rate since 2011 in 2023, according to the Census bureau.
  • The National Association of Realtors has reported a flatline in home buying activities for Gen Z and millennials since 2022.
  • Zohran Mamdani's popularity reflects a generational breakdown in views of the housing system, with younger voters perceiving the system as broken.

Statistics:

  • Median price of a home sold in the US: $446,766 (June)
  • Percentage of Americans unable to afford the median home: 75%
  • Median age of first-time homebuyers in the US: 38
  • Percentage of investor control of new family homes: 30% (highest share on record)
  • Number of renters receiving refunds for illegal practices by Invitation Homes: over 40,000
  • Amount of refunds paid by Invitation Homes: $48 million
  • Growth rate of real rent costs: fastest rate since 2011 (2023)
  • Generation breakdown in views of the housing system: everyone under 40 believes the system is broken

Sources:

  • National Association of Realtors
  • National Association of Home Builders
  • Redfin
  • Americans for Financial Reform
  • Federal Trade Commission
  • Census bureau
  • Invitation Homes
  • Zohran Mamdani
  • Caroline Nagy