T
he American Dream of homeownership is slipping further out of reach for millions. A staggering 94 million households, nearly three-quarters of the country's population, cannot afford a median-priced home valued at $400,000. The National Association of Home Builders' recent report paints a stark picture: while there are plenty of high-end homes to go around, the affordable housing market is woefully inadequate.

    The numbers tell a tale of two markets. On one hand, 76.4 million households can only afford homes priced under $300,000, but there are barely enough units available – just 37.4 million – to meet demand. In contrast, the luxury end of the market is awash with supply: 1.5 million people can afford homes valued at over $2 million, and there are a surplus 1.6 million units waiting for them.

    The imbalance between supply and demand has been exacerbated by rising home prices and elevated mortgage rates. The typical homebuyer's monthly payment has reached an all-time high of $2,807, making it increasingly difficult for first-time buyers to get on the ladder. As economist Na Zhao notes, "These imbalances show a shortage of affordable housing."