Recent studies in Austin, New York, Philadelphia, and Switzerland show that adding housing units—such as Austin’s 120,000 new units from 2015-2024—leads to lower median rents even amid population growth.
Contrary to public opinion, which polls show often believes more housing raises prices, research demonstrates that new construction triggers a chain effect, ultimately benefiting lower-income households through increased availability and affordability.
Despite this evidence, many voters blame landlords and developers for high prices and remain unconvinced that supply and demand principles apply to housing, highlighting a persistent gap between economic research and public perception.
Why do so many voters believe more housing will raise prices?
Can building new 'luxury' apartments actually make housing cheaper for everyone?
Austin built its way to lower rents. Could your city be next?
How is climate change quietly making the housing crisis even worse?
Could AI tools help cut the red tape that inflates housing costs?
Beyond zoning, what's the biggest hidden barrier to affordable homes?
The 2026 Housing Affordability Crisis: Over 10 Million U.S. Households Severely Cost-Burdened
Overview
By 2026, millions of American households faced severe housing cost burdens, with nearly half of renters spending over 30% of their income on rent and many dedicating more than half. This crisis is driven by soaring rents, fueled by limited housing supply due to local zoning restrictions and rising demand supported by federal policies. High mortgage rates have trapped homeowners, reducing available homes and pushing prices higher. These burdens increase inequality, limit workforce growth, and reduce labor mobility. Evidence shows that expanding housing supply, as seen in cities like Minneapolis, slows rent growth and eases affordability. Without urgent reforms to zoning and construction processes, the crisis will worsen, deepening economic and social challenges.