Why is housing so expensive right now? We investigated.

There’s no way to sugarcoat it: This is a tough time to buy your first house.

In 2019, the median home price in the United States was around $320,000. Today, it’s closer to $420,000. At the same time, mortgage rates have climbed from roughly 3% to around 7%.

Owning a home is, for many Americans, a key part of their American Dream. It’s way more than just having a roof over your head — it’s a sign of stability, financial independence, and prosperity.

However, with prices that high, it is difficult for many Latinos to buy their first house and take that big step toward their American Dream.

So, what changed? Why is housing so expensive? And, most importantly, how can we make it affordable?

We recently sat down with Wadi Gaitan, who’s had a lot of experience in the industry, on the latest episode of “Red, White, & Latino” to unpack what’s driving today’s housing costs.

👉 Watch the full episode here to hear the conversation.

The big reason: We haven’t built enough homes

Housing is expensive today mainly because we don’t have enough homes.

There are simply more families looking to buy than there are houses available, and when supply is limited and demand is high, prices rise.

Part of the shortage goes back to the 2008 housing crash, when construction slowed sharply and never fully caught up. Another part of the problem is the many regulations that make it so difficult to build new housing.

👉 Get the FACTS about why housing is so expensive.

In many cities, local zoning laws restrict what types of homes can be built and where. Large areas are limited to single-family homes only, even when demand calls for duplexes, townhomes, or smaller starter homes.

On top of that, permitting and approval processes can take months or even years, adding cost and uncertainty to every project.

Unsurprisingly, businesses aren’t building new housing fast enough to meet the demand, keeping housing prices sky-high.

The knowledge gap

There’s another factor that doesn’t get enough attention, one that’s especially important for the Latino community: There’s a big knowledge gap when it comes to how to buy a house in America.

Many Latino families grew up living in completely different financial systems.

They might have a tough time figuring out how to access credit, improve their credit scores, leverage a 401(k) to buy a house, and use the many tools available to become a homeowner in America.

That knowledge gap can make an already expensive market feel overwhelming.

Closing that gap matters just as much as policy changes. Families deserve both fair policies and the know-how to own a home.

A solution we believe in

At LIBRE, we believe Latino families deserve a real shot at homeownership and the American Dream.

That’s why recently we applauded the passage of the Housing for the 21st Century Act in the U.S. House of Representatives. This legislation takes some big steps to remove federal barriers and regulations that are keeping housing prices high.

Our executive director, Sandra Benitez, laid out why this bill is good for Americans:

 “This legislation marks a promising step forward in reducing federal housing regulations and removing barriers to increasing housing supply and innovation.”

But we know one bill isn’t going to singlehandedly make housing more affordable.

That’s why we’re pushing for more policies that make it easier to build, buy, and plan for the future.

If you care about protecting opportunity and keeping the American Dream within reach, click here to join us.