First-time Buyers Hold Off as Housing Costs Soar

WHO:

CBS News - Cristian Benavides reported on the situation of prospective homeowners.

WHAT:

USA Today - The 2026 edition of the "State of the Nation’s Housing" report states that only 1.1 million new households were formed in 2025, a number comparable to the depths of the Great Recession.

USA Today - As of 2024, 20.7 million homeowner households (24% of the total) spent more than 30% of their income on housing expenses, and 9.6 million spent more than half their income.

USA Today - In 2024, 11 million American households had “extremely low incomes,” but only 3.8 million rental units were both affordable and available, meeting the needs of just 35% of those households.

USA Today - The report indicates that among homeowner households headed by a Black person, 32% are cost burdened, compared to 22% of households headed by White owners.

Fast Company - In the TurboHome-ResiClub Housing Sentiment Survey for Q2 2026, 47% of homeowners indicated they would accept a mortgage rate of up to 6.0% on their next purchase.

Fast Company - The survey conducted between April 21 and May 21, 2026, included 430 U.S. adults.

Fast Company - Only a minority of survey respondents said they are “very likely” to purchase a home within the next 24 months, with many describing themselves as either unlikely or uncertain about buying in the near term.

Fast Company - 50% of homeowners surveyed expect the average 30-year fixed mortgage rate to be between 6.0% and 7.0% in 12 months.

Fast Company - In Q2 2026, 63% of homeowners said they would accept a mortgage rate up to 5.5%, compared to 54% in Q1 2025.

Fast Company - Among prospective buyers surveyed, 34% preferred a commission structure for buyer’s agents between 2.0% and 2.99%, while 23% preferred a flat fee structure.

Fox News - America's construction industry is short 250,000 workers monthly, contributing to extended building timelines and driving up costs amid a 1.5 million-home housing gap.

CBS News - The cost of a typical starter home has reached an all-time high.

Wired - The concept of buying a first house is being threatened by economic changes.

WHERE:

Wired - The discussion pertains to the United States, focusing on the broader implications for American homeownership.

WHY:

CBS News - High prices and elevated mortgage rates are causing prospective homeowners to delay purchases.

Wired - A shifting economic landscape is impacting the traditional milestone of homeownership for first-time buyers.

HOW:

CBS News - Prospective homeowners are holding off on purchases due to financial constraints related to housing costs.

(UPDATED June 17, 2026 23:24 UTC)

The latest "State of the Nation’s Housing" report reveals that in 2025, only 1.1 million new households were formed, a figure reminiscent of the Great Recession. As of 2024, a significant portion of homeowner households, about 24%, were spending more than 30% of their income on housing, with nearly 10 million of those spending over half their income. Additionally, the report highlights that among Black-headed homeowner households, 32% are facing cost burdens, compared to 22% of households led by White owners.

(UPDATED June 17, 2026 21:39 UTC)

In the latest TurboHome-ResiClub Housing Sentiment Survey for Q2 2026, 47% of homeowners indicated they would accept a mortgage rate of up to 6.0% on their next purchase, reflecting a shift in expectations. The survey, which included 430 U.S. adults, found that only a minority of respondents feel "very likely" to buy a home within the next 24 months, with many expressing uncertainty about their plans. Additionally, 63% of homeowners surveyed would accept a mortgage rate up to 5.5%, a notable increase from 54% in Q1 2025, while 34% of prospective buyers preferred a commission structure for buyer’s agents between 2.0% and 2.99%.

(UPDATED June 17, 2026 12:23 UTC)

America's construction industry is facing a significant challenge, with a shortage of 250,000 workers each month. This shortfall is leading to longer building timelines and increasing costs, all while the nation grapples with a housing gap of 1.5 million homes. As the demand for housing continues to rise, the impact of this workforce deficit is becoming more pronounced.

(UPDATED June 17, 2026 01:49 UTC)

The cost of a typical starter home has reached an all-time high, putting pressure on prospective homeowners across the United States. High prices and elevated mortgage rates are causing many to delay their purchases, as the traditional milestone of homeownership is increasingly threatened by a shifting economic landscape. This situation highlights the broader implications for American homeownership, as financial constraints continue to impact first-time buyers.