US Housing Crisis: Why Consumers Blame Income and Mortgage Rates

An Intense MLS report shows Americans identify low income and high mortgage rates as primary factors in the housing crisis, differing from expert views focused on supply shortages and construction issues.

That’s according to a report that Intense MLS published previously this month based on its December 2025 survey of over 3,200 American grownups. The respondents’ focus on revenue and mortgage prices– in contrast to a real estate supply shortage– suggests that consumers and financial experts have different viewpoints on the source of housing’s cost crisis.

Consumer Views on Real Estate Affordability

Everyone desires options: The public and industry professionals alike have supported for numerous housing affordability initiatives ranging from down payment aid programs to household building and construction guideline changes.

Last month, the president authorized an executive order outlawing company home acquisitions. Problems regarding income levels and home mortgage rates outranked concerns regarding financiers amongst study respondents, with only about 1 in 3– 32.3%– saying they think financiers “buying up too several residences” is a variable in real estate’s price problem.

Generational Concerns and Demographic Shifts

Study participants 60 and older were more concerned with the price of brand-new homes than more youthful respondents, while those under 40 were even more worried with location than other age groups. Over 50% of people 60 and older likewise pointed out the expenses of home owners insurance and property taxes as crucial difficulties to price– elements stated by less than 40% of participants under 60.

Revenues also reduced, home loan rates too high: When providing the factors that they think housing is expensive, any age teams claimed low income and high home loan prices were leading of mind. Over fifty percent of all respondents– 55.5%– stated people “do not make sufficient cash to afford a home,” while 50.1% said home mortgage rates “are expensive.”

With those current changes in mind, consumers “naturally indicate an absence of income growth and an uptick in home mortgage prices when they consider why real estate has ended up being unaffordable,” Sturtevant composed.

Income Growth vs Rising Home Costs

Revenue and home cost growth “normally tracked” in the decade prior to the Covid-19 pandemic, Intense MLS Principal Economic expert Lisa Sturtevant kept in mind in the record. Home costs started to increase faster in 2020, and home mortgage rates began climbing from pandemic-era lows a couple of years later.

Some study individuals did discuss housing supply as a price constraint. Just over 43% of participants stated as well few homes are being built at lower cost points, while almost 1 in 4 claimed also couple of homes are being constructed where people want to live.