Understanding the Housing Affordability Crisis

The topic of affordability, especially in the housing market, has gained significant attention lately. It’s interesting to note that younger people are reportedly facing higher price challenges than previous generations. According to the National Association of Realtors, today’s under-35 demographic is experiencing delays in achieving homeownership. The trends indicate not only that fewer young people own homes compared to earlier generations, but also that they are older when they take that first step into buying a house.

One of the most straightforward solutions suggested for helping Generation X enter the housing market is to reduce costs by increasing the availability of homes. While this supply-side strategy has potential, there’s another factor that must be considered: marriage.

It’s quite striking how rising housing prices align with declining marriage rates. Research from the Family Institute shows that only about 60% of men aged 35 are married today, a drop from 90% in 1980. Additionally, just 20% of 25-year-old women and 23% of 25-year-old men have ever been married, which is alarmingly close to the lowest statistics ever recorded.

The decrease in marriage rates brings forth several implications for the housing market.

When we think about it, having two incomes is certainly more advantageous than one for saving towards a down payment. The financial benefits of shared income can make a significant difference for couples looking to enter the housing market. However, this reality seems overshadowed by changing attitudes towards marriage.

Brad Wilcox of the Family Studies Institute refers to the concept of a “cornerstone marriage.” This refers to couples starting from modest means and collaborating to better their circumstances. In contrast, there’s the idea of a “capstone marriage,” which occurs when individuals wait until they’re financially stable enough to warrant a grand wedding and a home purchase. What’s concerning here is that not only are marriage rates on the decline, but so are positive perceptions about its importance.

Moreover, the implications of low marriage rates extend beyond just finances. There’s a growing number of small, single-person households now competing for limited housing. This demographic shift isn’t just minor; it reflects broader societal trends where more individuals are single, thereby increasing demand for housing.

Census data illustrates this point clearly: household sizes have contracted from an average of 3.3 per household in 1960, to just 2.4 in 2024. Meanwhile, the total number of households has gone from 117 million in 2010 to 132 million in 2024. This growth significantly outpaces population increases, complicating the housing landscape further.

Furthermore, more people are choosing to live alone. Between 2010 and 2024, single-person households grew from 31 million to 38 million, while larger households saw little change. Many Gen Z adults continue to reside with their parents well into their thirties. Back in 1960, only 11% of men and 7% of women aged 25 to 34 lived at home; by 2022, those numbers rose to 19% for men and 12% for women.

This trend has contributed to feelings of loneliness among Americans. As more individuals live alone, the emotional toll of solitude is becoming evident.

The rise of single-person households is closely related to the decline in marriage rates. Due to longevity differences, older women are often living alone, with men over 75 far more likely to still reside with a spouse compared to women of the same age. Housing policies tend to worsen the scenario, as public assistance often favors low-income single parents or older women, with only a small percentage of public or subsidized housing granted to families with two adults and children.

Still, it’s clear that marriage could help address housing affordability issues in meaningful ways. It allows for income pooling and may help lower the demand for individual living arrangements. After all, one bed is often better than two.