Summary
High housing costs in the U.S. may lead to fewer births next year, according to real estate company Redfin. While some affordability improvement is expected by 2026, many Americans will still find homebuying too expensive. This trend could affect the U.S. birth rate, which has already declined significantly in recent years.
Key Facts
- Redfin predicts high housing costs will reduce the number of births in the U.S. next year.
- Affordability may improve slightly by 2026 as incomes rise faster than home prices.
- In October, the median home price was $439,869, an increase from 2024.
- Gen Z and millennial homeownership rates remained almost the same last year, with Gen Z at 26.1% and millennials at 54.9%.
- The U.S. fertility rate hit a record low in 2024, with fewer than 1.6 children per woman.
- For population replacement, the fertility rate needs to be about 2.1 children per woman.
- More young adults are living with parents or roommates due to high housing costs.
- Redfin calls the expected affordability changes in 2026 'The Great Housing Reset,' though it may not help young families enter the market.
