A new report from the Local Initiatives Support Corporation (LISC) reveals that 69% of Americans are very concerned about housing costs, as prices continue to outpace wage growth. The nonprofit warns that the nation faces a growing shortage of 7 million housing units, exacerbating affordability challenges across the board.
LISC CEO Michael Pugh called for urgent action, noting that the gap between housing costs and incomes is widening. The concern spans both renters and homeowners, with affordability pressures hitting low- and moderate-income households hardest. No specific metros were highlighted in the report, but the data suggests a nationwide crisis.
The report does not address mortgage rates directly, but the broader context of rising borrowing costs compounds affordability. With home prices still elevated and inventory constrained, many potential buyers are priced out of the market, while renters face similar strain from escalating lease costs.
The ongoing shortage of 7 million units underscores a structural imbalance between supply and demand. For sellers, low inventory has kept competition fierce, but for buyers, the combination of high prices and wage stagnation limits purchasing power. The lack of new construction, particularly affordable units, remains a key bottleneck.
Economists have long warned that without policy intervention—such as zoning reform, subsidies, or increased public investment—the affordability gap will persist. Pugh's call for action aligns with broader advocacy for federal and local measures to boost housing supply and protect vulnerable households.