A new analysis by Open The Books, a conservative watchdog group, reveals that despite nearly $460 billion in federal spending by the Department of Housing and Urban Development (HUD) across 18 programs from 2015 through 2024, the American dream of homeownership has become increasingly unattainable for many Americans [1]. The report, which examined home-price and household-income data across all 50 states, found that home prices grew faster than median household incomes in every state during the past decade, resulting in what the group calls an 'Affordability Gap' [1].
The 'Affordability Gap' was calculated by subtracting the percentage growth in median household income from the percentage growth in each state's Federal Housing Finance Agency home-price index over the decade [1]. The findings show that in 48 states, this gap reached double digits, and in 17 states, home-price growth outpaced income growth by more than 50 percentage points [1]. According to Christopher Neefus, vice president of communications for Open The Books, 'A single agency in Washington is likely the least equipped to offer some uniform solution,' emphasizing the limited effectiveness of federal spending without addressing local regulatory hurdles and zoning restrictions [1].
The analysis found virtually no linear relationship between the amount of HUD funding a state received and the size of its affordability gap, suggesting that increased federal investment did not translate into improved housing affordability outcomes [1]. Neefus stated, 'Nearly half a trillion dollars was shoveled into the states over a decade, but it offered no meaningful effect for Americans whose incomes were outrun by prices in every state' [1].
While the report highlights the lack of impact from federal spending, it also points to the need for local-level solutions, such as addressing regulatory and zoning barriers, to make homeownership more attainable [1]. HUD, in response to the report, referenced efforts by the Trump administration to cut regulations, though further details were not provided in the article [1].
CONCLUSION
The watchdog report underscores that substantial federal spending by HUD over the past decade has not improved housing affordability for Americans, as home prices have consistently outpaced income growth nationwide. The findings suggest that local regulatory reforms, rather than increased federal investment, may be necessary to address the persistent affordability gap.