A recent survey shows that nearly all Americans agree: housing in the U.S. is too expensive. Only 3% of respondents believe housing costs are “reasonable”, while a staggering 93% say prices are too high, with 43% calling them “way too high.”

 

These perceptions come amid a housing market where affordability is near four-decade lows relative to income, and roughly half of renter households are cost-burdened, paying more than 30% of their income on housing.

What Americans Blame for High Housing Costs

The survey revealed Americans are divided on the cause of the housing crisis. Here’s a breakdown of what respondents think is driving up costs:

Investors buying homes for profit: 48%
High cost of building materials: 46%
Greedy landlords charging high rents: 43%
Elected officials not prioritizing affordable housing: 33%
Immigration: 17%
Length of time to build new homes: 9%

Interestingly, while investors often get the spotlight in public debates, economists argue their role in rising housing costs is limited.

The Real Culprit: A Housing Shortage & Low Interest Rates

Most housing economists agree that the fundamental problem is a chronic shortage of housing. The U.S. needs nearly 4 million additional homes to meet current demand. Factors like rising construction costs, zoning restrictions, and red tape in permitting processes all contribute to this shortage.