Housing is unaffordable. Here’s why

Why is housing so unaffordable these days? That’s the question millions of Latinos are asking themselves right now.

And they have good reason to be worried about it.

With mortgage prices on the rise, interest rates high, and wages stagnant, owning your own home is starting to feel like a fantasy to millions of hardworking Americans.

This housing crisis has been years in the making, caused by decades of outdated regulations that make it harder to build more homes to meet demand.

Latinos, regretfully, are bearing the brunt of this crisis.

The good news? These problems are fixable.

Why is housing so unaffordable? The real culprits

The main reason housing prices are so high is simple: We’re not building enough.

The United States has a housing deficit of 4.7 million, meaning there are too few houses to meet demand, which drives up prices.

So, why aren’t we building?

A big reason is that some policies make it difficult, sometimes nearly impossible, to build new housing.

Here’s what’s getting in the way:

• Strict zoning laws: There’s an effective ban on any type of housing that isn’t single-family on over 75% of America’s residential land.
• Cumbersome permitting processes: Burdensome regulations on parking, lot sizes, building heights, and a long list of other restrictions make it almost impossible for developers to build.
• Unelected bureaucrats are calling the shots: A lot of these rules aren’t coming from elected officials voters can hold accountable. They’re created by agencies and boards that operate with far less visibility.

And once those rules are in place, they rarely go away. New regulations stack on top of old ones, adding cost and complexity over time.

So, why is housing so unaffordable today?

You just have to look at all these regulations, permits, and laws that make building costly and burdensome.

And this crisis is hitting Latino families particularly hard.

The numbers are brutal, and Latino families are feeling it most

Home prices have surged to a median of $405,300. That means a household needs to earn around $135,100 a year to afford them by traditional standards.

Yet the median Latino household earns around $65,540 a year, far less than they need to afford a house.

This helps explain why the Latino homeownership rate is 48.7%, well below the national average of 59%.

And yet, Latino families are still pushing forward. Last year, 441,000 Latinos bought new homes.

Owning a home is traditionally part of achieving the American Dream, and Latinos are working with determination and grit to make their dream a reality.

Here’s the recipe to solve unaffordable housing

The good news? We’re not stuck. There are clear, practical solutions that can start lowering costs.

• First, build more types of homes. That means permitting duplexes, triplexes, accessory dwelling units, and mixed-use housing.
• Second, cut the red tape. Outdated rules like minimum lot sizes and excessive parking mandates need to go. Streamlining permits alone could shave months or years off construction timelines.
• Third, embrace innovation. Remove outdated restrictions that prevent the construction of manufactured housing, modular construction, and even 3D-printed homes, which can bring costs down faster.

These are just some of the solutions we can implement to help resolve the current housing affordability crisis now.

This is about the (Latino) American Dream

Latino families aren’t asking for handouts — we’re asking for a fair shot.

At LIBRE, we’re fighting for an affordability agenda that cuts red tape, lowers housing costs, and makes the American Dream possible again.

If you believe in expanding opportunity and making homeownership real for the next generation, join us today and be part of the solution.