Is owning a home still possible amid national housing crisis?

(NEXSTAR) — Housing costs have, for the most part, only continued to rise for Americans. The median monthly costs for a homeowner now totals $2,035, up from $1,960 in 2023 (and adjusted for inflation), according to recently released data from the U.S. Census Bureau. 

Those with a mortgage are spending about 21% of their income on mortgage payments, insurance, taxes, utilities, and other fees, the report’s authors said. 

Generally speaking, it’s the rising mortgage rates that have been driving the cost increases. While rates have been on the decline as of late, home sale prices are climbing – a recent Redfin report said median sale price is about $393,000, up 1.7% year-over-year.

Meanwhile, home sales have been so sluggish that some sellers have been taking their listings off the market. Some markets are beginning to see a return to “normal," while others may not see relief for years, a recent Redfin analysis found. 

The Trump administration appears poised to step in. Earlier this month, Treasury Secretary Scott Bessent revealed that the administration is considering declaring a national housing crisis in the fall to help bring down costs for buyers. 

While he didn’t share any specifics, Bessent suggested to The Washington Examiner that efforts could target standardizing building and zoning codes on the local level and decreasing closing costs. 

Redfin chief economist Daryl Fairweather suggested that addressing local codes may be a worthwhile approach. 

“We need to override some of the local control that is holding back builders from being able to build in places where housing is needed the most,” Fairweather told Nexstar. This could include amending zoning requirements within a certain distance of federally funded buildings, highways, transit routes, or institutions.

It’s the construction of new homes that could help respond to the housing shortage prospective buyers are facing, Fairweather said. While there was some construction during the pandemic, Fairweather explained that “we’re still in this same place where buying a home is unattainable for many people who thought that home ownership would be part of their lives.”

It’s also construction that is bearing some of the burden from the Trump administration, according to Fairweather. Tariffs are impacting costs, she said, while immigration crackdowns are impacting staffing. In both areas, Fairweather suggested the Trump administration could “do some [policy] carve-outs…to make sure that they aren’t harming the construction industry.” 

“The more supply there is, the better,” she added.

Where are monthly housing costs the highest?

In every state, those with a mortgage are spending at least $1,200 a month on mortgage payments, insurance, taxes, utilities, and other fees, recently-released Census data from its 2024 community survey shows. 

The median monthly housing costs for homeowners in two places – the District of Columbia and California – exceed $3,000. Hawaii isn’t far behind at roughly $2,937. 

When compared with Census data regarding the median income for households with a mortgage, those in Hawaii are spending the largest portion of their monthly income – roughly 25% – on housing costs. 

Alternatively, it’s West Virginia where those with a mortgage are spending the least on monthly housing costs at $1,272, according to Census data. That equates to about 16% of their median monthly income, the lowest rate in the nation. 

West Virginia, Virginia, and Vermont are the only states to see monthly housing costs decline from 2023 to 2024.

The interactive map below shows the median monthly housing costs by state in 2023 and 2024, as well as the portion of their median income that those with a mortgage are spending on those costs. 

While any moves by the Trump administration may target new homes and construction, current homeowners may see relief in the near future, too. President Donald Trump predicted the Federal Reserve would enact a “big cut” to interest rates, which ultimately came true. In its first cut since December, the Fed lowered its short-term rate to about 4.1%, down from 4.3%.

Interest rates aren’t mortgage rates, but both rely on the same economic forces: interest rates, the job market, and bond markets. An adjustment to one may signal an impending change for another. 

Earlier this month, the average rate on a 30-year U.S. mortgage to 6.35, its lowest level in nearly 12 months. A year ago, the rate averaged 6.2%.

The Associated Press contributed to this report.