“Housing is the
cornerstone of a stable life. Without it, everything else crumbles.”
Introduction
The U.S. housing market in 2025 continues to grapple with a
significant affordability crisis, leaving millions of households burdened by
excessive housing costs. As home prices and rents soar, a growing number of
Americans find themselves dedicating an unsustainable portion of their income
to secure a place to live. This article delves into the current state of
cost-burdened households, presents expert analyses, and offers actionable
insights for real estate professionals and policymakers.
Understanding Cost-Burdened Households
A household is considered "cost-burdened" when it
spends more than 30% of its income on housing expenses, including rent or
mortgage payments, utilities, and insurance. Those spending over 50% are
classified as "severely cost-burdened." According to the National Low
Income Housing Coalition (NLIHC), nearly 22.4 million renter households are
cost-burdened, with 12 million of them being severely cost-burdened .Novoco+4National Low Income Housing Coalition+4Enterprise
Community Partners+4
The Joint Center for Housing Studies (JCHS) reports that in
2023, 22.6 million renter households spent more than 30% of their income on
rent and utilities, marking a 2.2 million increase since 2019 . This trend
underscores the escalating challenges faced by renters across the nation.Harvard Gazette
Housing Affordability Statistics: The Numbers Behind
Cost-Burdened Households
- 22.4
million renter households in the U.S. are considered cost-burdened,
spending more than 30% of their income on housing. Of these, 12 million
are severely cost-burdened, dedicating over 50% of income to rent and
utilities. (NLIHC, 2025)
- Between
2019 and 2023, the number of cost-burdened renters increased by 2.2
million, signaling a persistent and growing housing affordability
crisis. (Harvard JCHS, 2025)
- In
high-cost regions such as San Jose, California, only 10% of
listings are affordable for median-income households, despite a
doubling of available homes in July 2025. (SF Chronicle, 2025)
- Urban
areas like Portland, Oregon, report that 25% of renters
spend more than 30% of their income on housing, reflecting a sharp decline
in affordable rental units by over 55% in the last decade. (Axios, 2025)
- Middle-income
households (earning $30,000–$74,999) are increasingly affected: 70%
of renters in the $30,000–$44,999 range are cost-burdened,
highlighting that affordability challenges extend beyond low-income
groups. (Novoco, 2025)
- The
median homeownership cost in the U.S. now requires approximately 36%
of a median-income family’s earnings, making homeownership
increasingly out of reach for first-time buyers. (NAHB, 2025)
- Rental
affordability gap: Across all income levels, households face a $70
billion shortfall in affordable rental units nationwide, reflecting
the scale of the structural housing deficit. (Enterprise Community Partners, 2025)
Regional Disparities in Housing Affordability
Housing affordability varies significantly across different
regions. In California, for instance, the San Jose metro area saw the number of
affordable homes double to about 330 listings as of July 2025. However, this
still represents only 10% of available listings, one of the lowest rates among
major U.S. housing markets .San Francisco Chronicle
Similarly, in Oregon, affordable rental units have dwindled
by over 55% in the past decade, primarily due to the proliferation of luxury
rental developments. In Portland, nearly 25% of renters now spend more than 30%
of their income on housing, highlighting the growing financial pressure .Axios
Expert Insights on Addressing the Crisis
1. Steve PonTell – President & CEO, National
Community Renaissance
Steve PonTell is a leader in affordable housing and community
development, emphasizing solutions that integrate housing affordability
with neighborhood revitalization. He advocates for comprehensive housing
policies that balance supply and long-term affordability, ensuring
communities remain inclusive and sustainable. PonTell highlights the importance
of partnerships between developers, policymakers, and local stakeholders to
create housing that supports both social and economic well-being.
2. Susan Lloyd-Hurwitz – Chair, National Housing Supply
and Affordability Council (Australia)
While focusing on Australia's housing market,
Lloyd-Hurwitz's insights are globally relevant. She criticizes the inequitable
tax breaks for property investors, which she believes contribute to the housing
affordability crisis. She calls for comprehensive reforms, including changes to
property tax settings and increased investment in social housing .The Guardian
3. Daniel McCue – Senior Research Associate, Harvard
Joint Center for Housing Studies
McCue highlights the rising cost burdens among renters,
particularly those earning between $30,000 and $74,999 annually. He notes that
affordability challenges have grown across nearly all income cohorts, with
significant increases in the percentage of cost-burdened households since 2022
.Novoco+1
Real-Life Impacts and Stories
Consider the case of a single mother in Portland who,
despite working two jobs, struggles to afford rent due to the scarcity of
affordable housing options. Her story reflects the broader issue of housing
instability affecting many Americans. Similarly, in California, a young couple
has been forced to delay homeownership plans due to the high cost of
entry-level homes, which now require a median-income family to allocate 36% of
their income just for mortgage payments .National Association of Home Builders
Policy Recommendations
To alleviate the burden on cost-burdened households, experts
suggest the following strategies:
- Increase
Affordable Housing Supply: Encourage the development of affordable
housing units through incentives for builders and developers.
- Implement
Rent Control Measures: Introduce policies that cap rent increases to
prevent displacement of low-income tenants.
- Enhance
Housing Assistance Programs: Expand eligibility and funding for
housing vouchers and subsidies to assist more households in need.National Low Income Housing Coalition+1
- Promote
Mixed-Income Developments: Support projects that integrate affordable
housing within higher-income neighborhoods to foster economic diversity.
Frequently Asked Questions (FAQ)
1. What defines a cost-burdened household?
A cost-burdened household spends more than 30% of its income
on housing expenses. Those spending over 50% are considered severely
cost-burdened.Census.gov+6Enterprise Community Partners+6National Low Income
Housing Coalition+6
2. How many households are affected by cost burdens?
As of 2025, approximately 22.4 million renter households are
cost-burdened, with 12 million being severely cost-burdened .National Low Income Housing Coalition+2Novoco+2
3. Which regions are most impacted?
Urban areas with high demand and limited housing supply,
such as San Jose and Portland, are experiencing significant affordability
challenges.
4. What are the long-term effects of housing cost
burdens?
Prolonged housing instability can lead to adverse health
outcomes, educational disruptions, and increased financial stress among
affected households.
5. How can individuals contribute to solving the crisis?
Individuals can advocate for affordable housing policies,
support local housing initiatives, and engage in community discussions to raise
awareness and drive change.
Myth-Busting: Addressing Common Misconceptions
- Myth:
Only low-income individuals are cost-burdened.
Fact: Middle-income households are increasingly
facing affordability challenges. In 2023, 70% of renters earning between
$30,000 and $44,999 were cost-burdened .Novoco+1
- Myth:
The housing market is improving.Realtor
Fact: Despite a slight increase in affordable
listings, the overall affordability crisis persists, with many households still
unable to afford median-priced homes .San Francisco Chronicle+1
- Myth:
Rent control policies harm the housing market.
Fact: When implemented thoughtfully, rent control can
protect tenants from displacement without significantly affecting the overall
housing market.
tep-by-Step Action Plan for Real Estate Professionals and
Policymakers
Step 1: Assess Local Housing Market Needs
- Collect
data on cost-burdened households, rental affordability, and
homeownership trends in your region.
- Identify
high-need areas where a majority of renters or buyers are spending
over 30% of income on housing.
- Use
tools like the National Housing Preservation Database or local
real estate analytics platforms to pinpoint gaps in affordable housing
supply.
Step 2: Prioritize Affordable Housing Development
- Partner
with developers and community organizations to create affordable
housing units.
- Explore
incentives such as tax credits, low-interest loans, or zoning
flexibility for projects that include affordable units.
- Promote
mixed-income developments to integrate affordability with
market-rate housing for sustainable community growth.
Step 3: Implement Supportive Housing Programs
- Identify
households at risk of housing instability due to medical, economic,
or social factors.
- Collaborate
with nonprofits and social services to provide supportive
housing solutions, combining housing with access to healthcare,
counseling, and job support.
- Leverage
federal and state housing vouchers to reduce rent burdens for
eligible households.
Step 4: Advocate for Policy Reform
- Engage
with local and national policymakers to push for rent control
measures, zoning reform, and funding for social housing.
- Highlight
the link between housing stability and community health and
economic outcomes to strengthen advocacy efforts.
- Monitor
policy implementation to ensure equitable access to new housing
programs.
Step 5: Monitor and Measure Impact
- Track
changes in the number of cost-burdened households, rental
affordability, and homeownership rates.
- Use data-driven
dashboards to assess the effectiveness of interventions.
- Adjust
strategies based on feedback from residents, developers, and community
stakeholders to continuously improve outcomes.
Step 6: Educate and Engage the Community
- Conduct
workshops, webinars, and town halls to inform residents about
housing options, assistance programs, and advocacy opportunities.
- Encourage
community participation in decision-making processes for affordable
housing projects.
- Promote
awareness campaigns highlighting the economic and social benefits
of housing affordability.
Future Outlook: Housing Affordability and Cost-Burdened
Households
The housing affordability crisis shows no signs of
disappearing in the near term, but strategic interventions and policy reforms
can significantly improve outcomes. Analysts predict several key trends
shaping the future of the real estate market:
1. Increased Demand for Affordable Housing
- With
rising rental and homeownership costs, demand for affordable
housing units will continue to grow.
- Regions
like California, New York, and Portland are expected to see
sustained pressure on rental markets, with low-income and
middle-income households at greatest risk of becoming cost-burdened.
2. Policy and Legislative Reforms
- Governments
are likely to expand housing assistance programs, including vouchers,
subsidies, and tax incentives for developers of affordable units.
- Zoning
reform and inclusionary housing policies may accelerate the
construction of mixed-income communities, providing long-term solutions
to urban housing shortages.
3. Integration of Technology in Housing Solutions
- Innovative
platforms will enhance housing search, affordability analysis, and
tenant support services, streamlining access to cost-effective
housing.
- Smart
housing solutions, combining energy efficiency and sustainable design,
will reduce living costs, indirectly easing the financial burden
on households.
4. Social and Economic Implications
- Reducing
cost burdens will improve community stability, access to healthcare,
educational outcomes, and workforce participation.
- Conversely,
failure to address affordability could increase housing insecurity,
displacement, and economic inequality, particularly among middle- and
low-income families.
5. Opportunities for Real Estate Professionals
- Real
estate professionals who understand these trends can position
themselves as thought leaders, guiding clients and communities toward affordable
and sustainable housing solutions.
- Engaging
with policy discussions, community development initiatives, and
innovative financing models will be essential for staying relevant and
impactful in the evolving housing landscape.
6. Long-Term Vision
- The
ultimate goal is to create inclusive, resilient, and economically
balanced communities where households are no longer disproportionately
burdened by housing costs.
- Strategic
investments, policy advocacy, and community engagement today will define
the housing stability and affordability landscape of 2030 and beyond.
Call to Action
The housing affordability crisis demands urgent attention
and action. Real estate professionals, policymakers, and community leaders must
collaborate to implement solutions that ensure all Americans have access to
safe and affordable housing. Engage with local housing advocacy groups,
participate in policy discussions, and support initiatives aimed at increasing
the availability of affordable housing. Together, we can make a significant
impact on addressing the needs of cost-burdened households.
References
- National
Low Income Housing Coalition (NLIHC) – "Out of Reach 2025: The High
Cost of Housing"
This report provides comprehensive data on housing affordability challenges across the United States.
Read more here National Low Income Housing Coalition - Joint
Center for Housing Studies (JCHS) – "Number of Those Burdened by
Rental Affordability Hits Record High"
An analysis of the increasing number of renters facing affordability issues.
Read more here Harvard Gazette - National
Association of Home Builders (NAHB) – "New and Existing Homes Remain
Largely Unaffordable in Second Quarter"
Insights into the ongoing challenges in the housing market's affordability.
Read more here National Association of Home Builders+1
About the Author
Dr. Daniel Cham is a physician and medical-legal consultant
with expertise in healthcare management, smart housing, and affordable housing
advocacy. He focuses on delivering practical insights that help professionals
navigate complex challenges at the intersection of healthcare and housing. Connect
with Dr. Cham on LinkedIn to learn more:
linkedin.com/in/daniel-cham-md-669036285
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