The affordability crisis has pushed the US housing market into its fourth straight year of weak sales

Homeownership has become increasingly unaffordable for many Americans as rising mortgage rates, property taxes, insurance premiums, maintenance costs, and utility bills continue to strain household budgets.

According to data from Intercontinental Exchange and Angi, the average annual cost of owning a home climbed from about $20,000 in 2019 to more than $28,500 in 2025, far outpacing inflation.

Housing market remains stuck
The affordability crisis has pushed the US housing market into its fourth straight year of weak sales. Existing home sales have remained around 4 million annually since 2023, well below the pre-pandemic average of 5 million to 5.5 million, according to the National Association of Realtors. 

Many homeowners are choosing not to sell because they want to keep the ultra-low mortgage rates they secured during the pandemic, which is limiting the number of homes available to buyers.

Rising rates, lower buying power
Higher costs have made it far more challenging for middle-class Americans to join the ranks of homeowners.

Mortgage rates have risen from below 3% during the pandemic to around 6.5% today, dramatically reducing affordability. According to Redfin, a buyer with a $2,500 monthly budget and a 20% down payment could afford a $517,500 home at a 3% mortgage rate. 

Today, that same buyer can only afford a home worth about $384,000, a decline of nearly 26% in purchasing power. Despite higher borrowing costs, home values remain near record highs because of limited housing inventory, according to Zillow.

Costs extend beyond mortgages
Homeowners are also paying more for insurance, property taxes, repairs, and utilities. Angi estimates that households spent nearly $12,500 on home maintenance, improvements, and emergency repairs in 2025, up from about $9,000 in 2019. 

Homeowners association fees have also climbed 51% between 2021 and 2025, according to Vantaca, while higher electricity prices continue to add to monthly household expenses, placing even greater financial pressure on first-time buyers and existing homeowners.