Americans Expend Nearly Half Their Earnings to Maintain a Place to Live

In the face of an uncertain future, affordable housing is emerging as a critical concern for Americans. With the average yearly salary in the United States standing at $66,622, the cost of housing, whether it's the purchase of a home or the rising rent prices, can feel daunting.

A study by Talker Research and Built reveals that 50% of respondents believe they are paying too much for housing, and on average, they spend 42% of their income on housing costs. This proportion, approximately $27,981, is a significant portion of their earnings.

Misconceptions about affordable housing are prevalent. According to a survey, 44% of Americans believe affordable housing is exclusively for low-income households, while 33% think it's another term for government housing. However, the Department of Housing and Urban Development defines affordable housing as housing where the total that the resident pays on both the shelter and their utilities is less than 30% of their income.

The high demand for affordable housing is reflected in the favorable views Americans hold towards it. 83% of respondents in the Talker Research and Built study view affordable housing favorably. Chase Gilbert, the CEO of Built, suggests that affordable housing could be the way forward to keep the American dream of homeownership alive.

The economic climate is challenging, with Americans grappling with the impact of inflation and rising costs, including housing costs. The median price of an existing home in the U.S. was $398,400 in February 2025, as determined by Bankrate. This figure varies greatly by location, with Hawaii having the most expensive homes at an average of $975,500 and Iowa having the most affordable homes at an average cost of $230,600.

Rent prices are also on the rise, with a 7.5% increase from 2023 to 2024 in communities with traditionally low rent costs, as reported by USA Today. This trend is particularly concerning in affordable areas.

In light of these challenges, it is clear that affordable housing is not just a luxury but a necessity for many Americans. The search for solutions continues, with Americans looking for alternative options, as reported by SoFi.

Mary-Faith Martinez, a writer who covers news, psychology, lifestyle, and human interest topics, is one of the voices contributing to this important discussion. Her insights provide valuable perspectives on this pressing issue.