Everyone agrees that the housing market in 2026 is tough, but the reason why depends entirely on who you ask. While economists point to charts showing inventory deficits, everyday consumers are looking at their paychecks and bank accounts.
A new report from Bright MLS highlights a fascinating disconnect between economic reality and consumer perception. Here is what the data says about what consumers think is causing the housing affordability crisis.
Why Do Americans Think Housing Is Unaffordable?
1. It’s About the Wallet, Not the Warehouse
If you ask an economist why housing is expensive, they will likely say “low supply.” If you ask a consumer, they say “low income.”
- The income gap: 55.5% of respondents believe the primary driver of the crisis is that people simply do not earn enough money to afford a home.
- The rate shock: 50.1% of people blame high mortgage rates.
- The takeaway: For the average American, the crisis is personal. It is not about how many homes are for sale (macroeconomics), but about the gap between monthly income and the monthly mortgage payment (microeconomics).
People don’t experience “inventory.” They experience the payment.
2. The Supply Shortage is “Invisible” to Many
Despite the industry consensus that the U.S. has a housing deficit, consumers don’t view supply as the main culprit.
- Only about 43% of respondents cited “too few homes being built at lower price points” as a key factor.
- This suggests that while “build more homes” is the correct long-term policy solution, it doesn’t resonate with the immediate financial pain buyers feel today.
The public hears “build more” and thinks “that won’t help me this month.”
3. The “Investor Villain” Myth is Fading
For years, the narrative has been that Wall Street investors are scooping up all the homes. Interestingly, consumers aren’t buying that story as much as you might think.
- Only 32.3% of respondents blamed investors for “buying up too many houses.”
- Buyers appear more focused on their own financial limitations (rates and wages) than on external market manipulators.
4. Generational Differences in “Affordability”
Different generations feel the pinch in different places.
- Under 40: This group is primarily concerned with location. They feel priced out of where they want to live, not just whether they can buy at all.
- Over 60: For older Americans, affordability isn’t just the mortgage. Over 50% of respondents aged 60+ cited homeowners insurance and property taxes as major barriers. This “hidden inflation” of homeownership hits fixed-income retirees the hardest.
Younger buyers fear “never getting in.” Older owners fear “not being able to stay.”
What This Means for Buyers
Affordability is being experienced as a monthly cash-flow problem. That means the smartest buyers aren’t just shopping homes—they’re shopping the full payment: rate, taxes, insurance, and the long-term cost of owning.
If you’re planning a move, your best leverage is clarity. Know your payment ceiling. Know your holding costs. And don’t ignore the “slow” expenses—insurance and taxes—that can quietly outgrow a fixed budget.
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Frequently Asked Questions (FAQs)
Do consumers blame corporate investors for high home prices?
Surprisingly, no. Only about 1 in 3 people (32.3%) believe investors buying homes is a primary factor. Most people blame low wages and high mortgage rates.
What do economists say is the actual cause?
Economists almost universally point to a supply shortage. We simply have not built enough homes to keep up with population growth, resulting in a deficit of over 1.1 million units.
Why do older generations worry about affordability if they already own homes?
Older respondents (60+) are heavily impacted by holding costs rather than purchase costs. They cited rising property taxes and insurance premiums as key affordability challenges, which can strain fixed retirement incomes.