Key Takeaways

• Jonathan Macht, a top-performing Realtor, highlights the growing crisis of housing affordability in the U.S.
• Only 20% of homes on the market in 2025 are affordable for households earning $75,000 annually, compared to 50% pre-pandemic.
• Median home prices reached $420,000 in Q1 2025, creating barriers for middle-income earners in teaching, nursing, and skilled trades.
• Restrictive zoning and limited new construction have deepened affordability gaps in 26 of the top 100 U.S. markets.
• Creative solutions include converting office buildings to apartments, co-living designs, and accessory dwelling units (ADUs).
• States like California, Arizona, and Massachusetts, along with several cities, are supporting ADUs to expand affordable housing options.

Jonathan Macht‘s career in real estate is marked by a series of impressive achievements that underscore his dedication and expertise in the industry. Beginning his journey at Coldwell Banker in 2019, he quickly became one of Los Angeles’s standout Realtors through a grassroots approach of door-knocking and cold-calling, which resulted in significant commission earnings and recognition such as the President’s Elite Award in 2021, placing him among the top 2 percent of Coldwell Banker Realtors worldwide. His move to EXP Realty in 2023 has already produced notable results, with multiple high-value transactions completed in his first year.

Beyond sales success, Macht’s professional experience spans project management, client relations, and volunteer fundraising, demonstrating his leadership and commitment to growth. With a political science degree from Tulane University, graduating with honors, Macht brings both analytical skills and practical expertise to the housing conversation, making his insights into affordability especially credible.

Home ownership has long been a primary objective of the American middle class. However, this is changing rapidly, as data from the National Association of Realtors (NAR) reveals. According to a May 2025 CBS News article, only around 20 percent of residences on the market were accessible to households with an annual income of $75,000, a decrease from around 50 percent of homes before the pandemic.

The Federal Reserve Bank of St. Louis surveyed the 100 largest cities nationwide and reported a median sale price for the first quarter of 2025 of approximately $420,000. More than 400,000 new listings, priced at $255,000 or less, are needed to reattain a pre-pandemic level of affordability.

As an NAR director of real estate research and senior economist described it, the roots of this housing affordability crisis extend nearly two decades. In 2006, the emerging housing crisis and subprime mortgage scandal led to a significant slowdown in new construction. With housing in short supply, a seller’s market emerged, with available properties often receiving multiple bids from buyers.

As the NAR executive describes it, many who earn an average income feel that home ownership is simply out of reach and have given up on it. Their professional fields include teaching, nursing, and skilled trades such as plumbing. They are the middle-income buyers who traditionally make up the housing market’s backbone.

The NAR report also reveals that affordability gaps are widening in 26 of the nation’s top 100 markets. These range from Scranton, Pennsylvania, to Los Angeles, California, markets where permitting and zoning restrictions make new property development a challenge. Florida and Texas have experienced rapid population growth, prompting local governments to build new subdivisions, with tracts of land rezoned for residential development.

Among the cities that have successfully achieved an upswing in availability are Columbia, South Carolina, and Raleigh-Cary, North Carolina. These cities have witnessed a year-on-year 5 percent increase in affordable listings. Columbia’s strategy has been encouraging new townhome developments.

A Pew Charitable Trusts research report in May 2025 identified ways to address this critical affordability gap. One is taking existing stock of empty or underutilized office buildings in cities such as Denver, Minneapolis, and Washington, DC, and converting them into apartments. The aim is to provide affordable options to those earning below the median income of the area.

A complementary approach to such cost-effective transformations is co-living designs, where tenants share kitchen and bathroom spaces on each floor. This brings the total development costs to 25 percent and 50 percent of conventional apartments.

Another compelling concept is accessory dwelling units (ADUs), also known as in-law suites and tiny homes. These spaces take an existing restricted footprint and add living quarters in the backyard, basement, or garage. Simple to fit out and rent, these solutions help alleviate housing crunches and provide additional income to property owners.

Not every city or state welcomes ADUs. However, 14 states, including California, Arizona, Montana, and Massachusetts, have extended legal protections to those who build ADUs. In addition, cities such as Spokane, Denver, Phoenix, Salt Lake City, and Richmond have laws that support ADU construction.

FAQ

Why is home ownership becoming unaffordable for many Americans?

Home prices have risen sharply, with median values hitting $420,000 in 2025. At the same time, supply shortages, restrictive zoning laws, and lagging new construction have limited affordable housing options.

Who is most affected by the housing affordability crisis?

Middle-income earners, including teachers, nurses, and skilled trade workers, are finding it increasingly difficult to buy homes, even though they traditionally form the backbone of the housing market.

What solutions are being proposed to address housing affordability?

Proposed solutions include converting unused office buildings into apartments, implementing co-living designs, and building accessory dwelling units (ADUs) to increase housing availability.

Which U.S. markets are improving in affordability?

Cities such as Columbia, South Carolina, and Raleigh-Cary, North Carolina, have seen improvements, with affordable listings increasing by about 5% year-over-year.

What role do zoning laws play in the affordability crisis?

Zoning restrictions often slow down or prevent new housing developments, limiting supply and driving up prices in many major markets.

Where are ADUs legally supported in the U.S.?

Fourteen states, including California, Arizona, Montana, and Massachusetts, as well as cities like Denver, Spokane, and Salt Lake City, have laws supporting ADU construction to expand housing options.