White House Report Focuses on Housing Affordability Crisis

Administration looks to rates, supply, and market competition to address homeownership challenges.

Apr. 15, 2026 at 1:29pm

Got story updates? Submit your updates here. ›

An abstract illustration composed of clean, primary-colored geometric shapes and lines, conceptually representing the complex economic factors driving the housing affordability crisis in the United States.A geometric visualization of the economic forces shaping the housing affordability crisis in the United States.Washington Today

The White House's 2026 Economic Report of the President puts the ongoing housing affordability crisis back in focus, highlighting how homeownership is becoming increasingly out of reach for many Americans. The report lays out the administration's view on the key drivers behind the issue, including rising mortgage rates, limited housing supply, and competition from institutional investors.

Why it matters

The report underscores the significant challenges facing prospective homebuyers, with real home prices rising over 80% in the past two decades while incomes have only increased by around 12%. This growing affordability gap has pushed the median age of first-time homebuyers to 40, up from 28 in the early 1990s. The administration is now looking to address these issues through policy actions targeting mortgage rates, regulatory barriers to new construction, and investor competition in the housing market.

The details

According to the report, a typical homebuyer at the end of 2024 could expect to pay roughly $2,400 per month in mortgage principal and interest, up from about $1,400 at the end of 2019. The report also notes that homes priced below $300,000 accounted for nearly half of new construction in 2019, but just one-sixth by 2024 - a shift that continues to squeeze first-time buyers out of the market. While mortgage rates have come down from their peak, the report makes clear that rates alone won't solve the problem, as structural cost pressures embedded in the housing market, such as regulatory requirements accounting for nearly 30% of the cost of a new home, are also major factors behind elevated home prices.

  • The White House's 2026 Economic Report of the President was released on April 13, 2026.
  • Real home prices rose 81.9% between 2000 and 2023, while real median income increased just 12.3%.

The players

Council of Economic Advisers

The Council of Economic Advisers is an agency within the Executive Office of the President that provides the President with objective economic advice on the formulation of both domestic and international economic policy.

Fannie Mae

Fannie Mae is a government-sponsored enterprise that provides liquidity, stability, and affordability to the U.S. housing market by purchasing and guaranteeing mortgages.

Freddie Mac

Freddie Mac is a government-sponsored enterprise that provides liquidity, stability, and affordability to the U.S. housing market by purchasing and guaranteeing mortgages.

Got photos? Submit your photos here. ›

What’s next

The administration plans to take actions to reduce regulatory barriers tied to zoning, permitting, and construction requirements in order to increase housing supply in high-demand markets. The report also indicates that the federal government will review mortgage rules affecting underwriting and compliance standards, which could touch areas such as ATR-QM requirements, appraisal frameworks, and other core components of the loan process.

The takeaway

The White House's economic report highlights the growing affordability crisis in the housing market, with rising mortgage rates, limited supply, and investor competition all contributing to the challenge of homeownership. The administration is now looking to address these issues through a combination of policy actions aimed at lowering borrowing costs, reducing regulatory barriers to new construction, and managing the impact of institutional investors on the single-family home market.