“`html
WASHINGTON, January 21, 2026 – The median single-family home price hit $412,500 in 2024, a 4.7% jump, and the dream of homeownership is slipping away for many americans. President Trump recently proposed a plan to tackle the issue, but whether it addresses the core problems-or just targets convenient scapegoats-is sparking debate.
A Shifting American Dream
The U.S. housing market is in crisis, with affordability at historic lows.
- Home prices have surged 60% as 2019.
- Average monthly mortgage payments rose from $1,445 in 2021 to $2,570 in 2024.
- The annual income needed to afford a median-priced home is now around $126,700.
- Institutional investors hold a relatively small share of the overall market.
- The biggest driver of the crisis is a severe shortage of housing supply.
For generations, owning a home was seen as the ultimate symbol of success. “For a very long time, buying and owning a home was considered the pinnacle of the ‘American Dream’. It was the reward for working hard, and doing the right thing,” President Trump wrote on Truth Social. But today, that dream feels increasingly out of reach.
rising prices and interest rates are squeezing potential homebuyers. The average monthly mortgage payment ballooned from approximately $1,445 in 2021 to around $2,570 by 2024.Currently, a 31% housing debt-to-income ratio and a 30-year mortgage with a 3.5% downpayment requires an annual income of around $126,700 to afford the median-priced home-a dramatic increase from the $79,300 needed in 2021.
Adding to the pressure, wildfires in California have diminished the already limited housing stock, particularly in high-demand areas. Concurrently, decreasing federal housing support is creating uncertainty for those relying on assistance programs. The US Chamber of Commerce estimates the housing crisis is costing the U.S. economy billions in lost production, income, and jobs.
What’s Trump Proposing?
President Trump is outlining a major economic plan aimed at lowering the cost of living, with housing affordability as a key component. Last week, he stated, “I am instantly taking steps to ban large institutional investors from buying more single-family homes, and I will be calling on Congress to codify it,” according to a post on Truth Social. Further details are expected during the World Economic Forum in Davos later this month.
The administration is also considering a 50-year mortgage plan and transferable mortgages, announced in november, to broaden access to homeownership.However
