New Census Figures Show Housing Affordability Getting Worse

What You Need to Know

• Several housing affordability measures deteriorated, according to new Census Bureau data.

• Nearly 3 in 10 homeowners with mortgages are spending 30% or more of their income on housing, the federal benchmark for being “cost-burdened.”

• Higher home prices and mortgage rates have made ownership less attainable for many Americans, adding to broader concerns about living costs.

Homeowners with mortgages devoted a larger share of their income to housing in 2025, marking the fourth straight year that affordability worsened, according to Census Bureau data released Thursday.

A broad set of figures in the Census report pointed to deeper strain. The share of mortgaged homeowners spending 30% or more of income on housing climbed for a third consecutive year, reaching 29% from 27.8% in 2024. The share spending at least half of their income rose to 12.4% from 11.8%.

Younger households are also falling behind. The homeownership rate among households headed by someone under 35 declined for a third straight year, to 34.5% from 35.4%. At the same time, 33.6% of adults ages 18 to 34 were living with their parents, the highest share since at least 2021.

Why This Matters to You

When 30% or more of income goes toward the mortgage, taxes, insurance, and utilities, less is left for groceries, car repairs, retirement savings, and emergency savings.

The data reflects the pressure created by two major forces: home prices that surged during the pandemic and have remained elevated, and mortgage rates that stayed high. The government defines housing costs above 30% of household income as “cost-burdened.”

The figures come from an Investopedia analysis of data from the American Community Survey, which the Census Bureau conducts each year between its once-a-decade head counts.

Recent private-sector data points to similar patterns. In recent months, pressure has increased as the Iran war pushed fuel prices higher and sent mortgage rates to their highest level since 2023.

The Census data covers people who already have mortgages. For prospective buyers, the outlook is even tougher. Oxford Economics estimated that a household needs income of $115,600 to afford the median-priced home, a level reached by only 38% of households.

High housing costs are part of a wider cost-of-living squeeze that has kept consumer sentiment near record lows, even as unemployment remains relatively low and the economy appears healthy by most conventional measures.