Homeownership rates in 2024 fell for the first time in eight years due to soaring home prices, making ownership unattainable for many, according to Harvard University’s Joint Center for Housing Studies. Prices are up 60% nationwide since 2019, with the U.S. median existing single-family home price hitting a new high of $429,400 in 2025, reports S&P CoreLogic Case-Shiller US National Home Price Index.

The rise in mortgage rates since 2020 has also increased the income required to afford a typical home. The average 30-year fixed mortgage rate has risen from around 3.72% in January 2020 to around 6.30% today, making homeownership out of reach for many American households, as per the Federal Reserve Bank of St. Louis.

To make homeownership more affordable, consider federal, state, and city programs that help with down payments, closing costs, or offer lower interest rates for those who qualify. Options like FHA loans, VA loans, and USDA loans provide opportunities for lower down payments or no down payment based on eligibility requirements.

For those looking to enter the housing market, condos, townhomes, manufactured homes, or smaller single-family properties can be more affordable options. Consider expanding your search radius to areas with more affordable housing, such as up-and-coming neighborhoods, nearby suburbs, or small towns within commuting distance.

To maximize savings and cut down on taxes, compare rates and terms from at least three lenders to find the best deal. Additionally, consider buying a property with multiple units that you can live in while renting out the others to help cover the mortgage and qualify for a larger loan.

Read more at Yahoo Finance: Housing Affordability Crisis Deepening as Prices Soar 60% Since 2019, Harvard Report Warns