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    Housing affordability data explained: the key US and UK numbers

    The most-used affordability measure is the cost burden: 49.4% of US renter households and 23.9% of owners spent more than 30% of income on housing in 2024.[1] NLIHC estimates a full-time worker needed $34.73 an hour in 2026 to afford a modest two-bedroom rental. The average 30-year mortgage rate was 7.40% in early October 2026, and housing starts ran at a 1.275 million annual rate in August.[2][3][4]

    Editor reviewedStrict sourcingUpdated ExplainerSocial welfare, Markets and trading, Tech policy

    Housing affordability is measured in several ways, and each answers a different question. This page explains the main measures and gives the latest figures, with their dates. Figures are revised and updated often; check the original release before relying on a number. This is information, not financial advice.

    Cost burden: share of income spent on housing

    The basic test is whether a household spends more than 30% of its income on housing. If it does, it is “cost burdened”. Spending more than half is “severely cost burdened”.[5] In 2024, about half of US renter households were cost burdened, compared with about a quarter of homeowners.[1]

    CRS’s analysis of the 2024 American Community Survey found 22.7 million renter households (49.4%) and 20.7 million owner households (23.9%) cost burdened. 26.2% of renters were severely burdened.[1] Among households with incomes under $30,000, 67.3% of renters and 57.1% of owners were severely burdened.[6] The renter rate has been between 46.3% and 50.7% every year since 2006.[7] Harvard’s Joint Center for Housing Studies reports the same 22.7 million renter figure in The State of the Nation’s Housing 2026.[1]

    The Housing Wage: what a full-time worker must earn

    The National Low Income Housing Coalition (NLIHC), an advocacy group, publishes an annual Out of Reach report. Its “Housing Wage” is the hourly wage a full-time worker needs to afford a modest rental at HUD’s Fair Market Rent without spending more than 30% of income.[8] For 2026, NLIHC put the national figure at $34.73 an hour for a two-bedroom and $29.19 for a one-bedroom.[2] It is built on HUD’s Fair Market Rent, an estimate of what a family moving today can expect to pay for a modest home, so it does not show what existing tenants pay.[8]

    Prices, rents and mortgage rates

    • Home prices. The median existing-home price was $414,300 in 2025, down 1% from 2024 after inflation but 21% above 2019.[9]
    • Rents. The median asking rent was $1,492 in 2025, down 2% from 2024 after inflation but nearly 18% above 2019. Asking rents reflect new leases, not what sitting tenants pay.[10]
    • Mortgage rates. Monthly average 30-year rates ranged from 6.05% to 6.67% in January-August 2026.[11] By the week of October 8 the weekly average had risen to 7.40%, up from 6.30% a year earlier.[3] The Federal Reserve raised its policy rate in September 2026; for how that feeds through, see what a Fed rate change does to mortgages and the Federal Reserve profile.[12]

    Supply: starts, completions, vacancies

    The Census Bureau publishes monthly construction figures. In August 2026, privately owned housing starts ran at a seasonally adjusted annual rate of 1,275,000. That was 2.6% below July and 1.2% below August 2025, but both changes were within the margin of error.[4] Permits ran at 1,394,000. Completions were 1,128,000, 27.1% below a year earlier.[13] The rental vacancy rate was 7.1% in 2025, the highest since 2017.[14] About 1.7 million homes were for sale at the end of 2025, the most since 2019.[15] What these numbers mean for the shortage debate is covered in the housing supply and zoning debate.

    UK figures

    England’s main supply measure is “net additional dwellings”, the change in the housing stock after new builds, conversions, changes of use and demolitions.[16] The figure was 208,600 in 2024-25, down 6%.[17] The government’s target is 1.5 million net additional homes in England this Parliament.[18] An estimated 437,900 were delivered between 9 July 2024 and 20 September 2026, about 29% of the total.[19] At the same time, a record 135,580 households were in temporary accommodation in March 2026.[20]

    Upcoming releases

    Freddie Mac publishes its mortgage rate survey every Thursday.[3] England’s 2025-26 net additional dwellings figures are due in November 2026.[21]

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    Questions readers ask

    What does "cost burdened" mean?

    A household is cost burdened if it pays more than 30% of its income for housing, and severely cost burdened if it pays more than half.[5]

    How many renters are cost burdened?

    In 2024, 22.7 million US renter households (49.4%) were cost burdened, and 26.2% were severely cost burdened. The share has been between 46.3% and 50.7% every year since 2006.[1][7]

    What is the Housing Wage?

    It is NLIHC's estimate of the hourly wage a full-time worker needs to afford a modest rental at HUD's Fair Market Rent while spending no more than 30% of income. In 2026 it was $34.73 for a two-bedroom and $29.19 for a one-bedroom.[8][2]

    What is the current 30-year mortgage rate?

    Freddie Mac's average was 7.40% in the week of October 8, 2026, up from 7.28% a week earlier and 6.30% a year earlier.[3]

    How many homes are being built in the US?

    Housing starts ran at a seasonally adjusted annual rate of 1,275,000 in August 2026, and permits at 1,394,000. Neither monthly change in starts was statistically significant.[4][13]

    Are rents still rising?

    The median asking rent was $1,492 in 2025, down 2% from 2024 after inflation but nearly 18% above 2019. The rental vacancy rate rose to 7.1%, the highest since 2017.[10][14]

    Sources

    · 21 claims from 10 publishers

    Each numbered claim is a statement we checked against the sources listed with it. Tap a number in the text to see its sources in place.

    1. [1]

      In 2024, 22.7 million renter households (49.4%) and 20.7 million owner households (23.9%) were cost burdened, and 26.2% of renter households were severely cost burdened. confirmedas of 2026-05-13

    2. [2]

      The National Low Income Housing Coalition's Out of Reach 2026 report estimates that a full-time worker needs $34.73 an hour to afford a modest two-bedroom rental at HUD's Fair Market Rent, and $29.19 for a one-bedroom, without spending more than 30% of income. confirmedas of 2026-07-23

    3. [3]

      Freddie Mac's average 30-year fixed mortgage rate was 7.40% in the week of October 8, 2026, up from 7.28% a week earlier and 6.30% a year earlier; the survey is published weekly on Thursdays. confirmedas of 2026-10-08

    4. [4]

      US privately owned housing starts ran at a seasonally adjusted annual rate of 1,275,000 in August 2026, 2.6% below July and 1.2% below August 2025; neither change is statistically significant. confirmedas of 2026-09-17

    5. [5]

      Federal housing policy typically treats housing as affordable if it costs no more than 30% of family income; households paying more are "cost burdened" and those paying more than half are "severely cost burdened". confirmedas of 2026-05-13

    6. [6]

      Among households with incomes below $30,000 in 2024, 67.3% of renters and 57.1% of owners were severely cost burdened. confirmedas of 2026-05-13

    7. [7]

      Every year from 2006 to 2024, roughly half of US renter households (46.3% to 50.7%) were cost burdened. confirmedas of 2026-05-13

    8. [8]

      NLIHC's "Housing Wage" is the hourly wage a full-time worker must earn to afford a modest rental at HUD's Fair Market Rent while spending no more than 30% of income on housing. confirmedas of 2026-07-23

    9. [9]

      The median existing-home price was $414,300 in 2025, down 1% from 2024 after inflation but 21% above 2019 in inflation-adjusted terms. confirmedas of 2026-09-25

    10. [10]

      The median asking rent was $1,492 in 2025, down 2% from 2024 after inflation but nearly 18% above 2019 in inflation-adjusted terms; asking rents cover new leases, not rents paid by current tenants. confirmedas of 2026-09-25

    11. [11]

      In the first eight months of 2026, monthly average 30-year fixed mortgage rates ranged from 6.05% in February to 6.67% in August, below the October 2023 high of 7.62%. confirmedas of 2026-09-25

    12. [12]

      On September 16, 2026 the FOMC unanimously raised the federal funds target range by a quarter point to 3.75-4.00%, saying the move would support a timelier return to 2% inflation. confirmedas of 2026-09-16

    13. [13]

      Building permits ran at an annual rate of 1,394,000 in August 2026, and completions at 1,128,000, 27.1% below August 2025. confirmedas of 2026-09-17

    14. [14]

      The US rental vacancy rate was 7.1% in 2025, the highest since 2017 and up from 5.8% in 2022, coinciding with high multifamily construction. confirmedas of 2026-09-25

    15. [15]

      About 1.7 million homes were for sale at the end of 2025, the highest since 2019 but lower than in every year from 1995 through 2019. confirmedas of 2026-09-25

    16. [16]

      England's "net additional dwellings" statistic, the government's primary measure of housing supply, counts the change in the dwelling stock, including new builds, conversions, changes of use and demolitions. confirmedas of 2026-10-11

    17. [17]

      England added 208,600 net additional dwellings in 2024-25, 6% fewer than in 2023-24. confirmedas of 2026-10-11

    18. [18]

      The UK government's target is 1.5 million net additional homes in England during the current Parliament, measured by net additional dwellings. confirmedas of 2026-10-11

    19. [19]

      An estimated 437,900 net additional homes were delivered in England between 9 July 2024 and 20 September 2026, about 29% of the 1.5 million target; Full Fact rates the pledge as "appears off track". confirmedas of 2026-10-11

    20. [20]

      On 31 March 2026, a record 135,580 households were in temporary accommodation in England, including 177,530 children. confirmedas of 2026-08-13

    21. [21]

      The UK government expects to publish 2025-26 net additional dwellings statistics in November 2026. confirmedas of 2026-10-11

    Revision history (1)
    1. Page created.

    Created Oct 11, 2026. Last reviewed by an editor on Oct 11, 2026. Next scheduled review: Oct 22, 2026.

    Cite this page

    "Housing affordability data explained: the key US and UK numbers." ContentLora, updated Oct 11, 2026. https://contentlora.com/explain/housing-affordability-data-explained

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