"Has homeownership become a luxury good? Experts are increasingly suggesting that homeownership, once a common milestone, has become a luxury good for many Americans due to skyrocketing costs that have outpaced wage growth. A luxury good is typically a high-end item that is not a necessity and is purchased when ample disposable income is available. By this definition, the extreme cost of buying and maintaining a home today pushes it into the luxury category for many."
"Price and interest rate hikes: The median home price increased by 35.2% from 2019 to the fourth quarter of 2023. Additionally, mortgage rates in early 2024 were roughly double what they were in early 2022. Burden of ownership costs: An analysis by the U.S. Census Bureau revealed that median monthly ownership costs for mortgaged homeowners increased 26% between 2019 and 2024, to $2,035."
Homeownership has become unaffordable for many Americans as qualifying income, purchase prices, interest rates, and ownership costs have surged. The share of median household income required to qualify for a home purchase rose from 87% in 2005 to 152% in 2023. Median home prices climbed 35.2% from 2019 to Q4 2023 while mortgage rates in early 2024 were roughly double early 2022 levels. Median monthly ownership costs for mortgaged homeowners rose 26% between 2019 and 2024 to $2,035. Annual costs to own and maintain a single-family home exceeded $21,000 in 2025, with average maintenance over $8,800. Renters also face greater burdens, with the rent share of median income rising from 37% in 2004 to 71% in 2023. Low affordable supply, cautious post-2008 homebuilding, owners holding low-rate mortgages, institutional investor purchases, and restrictive zoning have driven prices higher.
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