The State of the Nation’s Housing 2023 Report Published 

The Joint Center for Housing Studies of Harvard University recently published its report titled “The State of the Nation’s Housing 2023.” The report provides insight into the current state of the United States housing market–highlighting the challenges faced by homeowners and renters due to rising costs. 

One key finding of the report is the significant impact of increasing interest rates on housing affordability. Despite a decrease in housing demand and market activity, the cost of homeownership continues to rise, surpassing pre-pandemic levels. Factors such as higher borrowing costs, and rising costs of land and construction, have contributed to a decline in the construction of new single-family homes, thereby exacerbating the existing housing shortage. These rising costs have particularly affected first-time homebuyers, rendering homeownership unattainable for many. 

While rent growth has slowed down in certain areas and home prices have declined, overall affordability remains a pressing concern. The report highlights the growing number of homeowners and renters burdened by housing costs, with a record 21.6 million renter households spending more than 30 percent of their income on housing.  Furthermore, the report suggests a potential slowdown in the construction of multifamily properties due to an increase in rental vacancy rates, higher interest rates, and stricter lending standards.  

Find the full report here.