Housing in 2026: Are Politicians Making It Worse?

As we step into 2026, the conversation around housing affordability is more intense than ever. It feels like this issue, long relegated to the background, has finally taken center stage. More and more homeowners—and prospective buyers—are waking up to the harsh reality of rising housing costs. It prompts a critical question: can our politicians genuinely improve affordability, or are they unwittingly contributing to the problem?

The Current Landscape of Housing Costs

In recent months, we’ve witnessed an influx of proposals and discussions from the government regarding housing affordability. These conversations were once overshadowed by other pressing issues but are now front and center. Notably, the scrutiny is not just on those trying to purchase homes; current homeowners are feeling the pressure as well.

Home prices, whether due to rising demand or increased property values, are elevating the overall cost of living. As these prices climb, so do property taxes and insurance, mostly driven by the reassessment of home values. Many who believed they were securely housed are now caught by surprise at what they owe.

Understanding the Root Causes

A key point to understand is that while home prices may seem exorbitant, it’s their relationship to income that truly defines affordability. The fundamental truth is this: home prices are not high in isolation; they are high compared to the income levels of residents in that area. If a household’s income cannot support the median home price, demand dwindles, and potential buyers are left out of the market.

Therefore, analyzing local income against home prices reveals much about market sustainability. For instance, a city where the median income is $40,000 but the average home price sits at $450,000 will inevitably face a downturn in demand, impacting future pricing.

The Government’s Role: Affordability or Inefficiency?

For over two decades, government intervention has played a significant role in housing affordability—and the effects have often been counterproductive. Actions such as manipulating interest rates were intended to stimulate the market but have led to unintended consequences, including rising home prices. In the wake of the COVID-19 pandemic, we saw historically low interest rates designed to encourage spending. However, this strategy merely fueled a housing frenzy, driving prices to dizzying heights.

Even recent proposals, like the introduction of a 50-year mortgage or attempts to ban institutional investor purchases, suggest attempts to address the surface-level symptoms of a much deeper problem. These measures tend to be temporary patches rather than substantial long-term solutions.

Moving Forward: What Needs to Change?

To genuinely tackle housing affordability, the conversation must shift towards long-term structural changes. We need to discuss how to raise incomes, decrease housing prices, or encourage greater savings—these are the pathways to real change. Continued artificial manipulation of the housing market will only contribute to ongoing challenges and instability.

Homebuyers should remain proactive. While approaching the market can feel daunting, purchasing a home not only secures a place to live but also builds equity over time. As rates fluctuate and buying conditions change, understanding current market trends is crucial for making informed decisions.

Key Takeaways

Housing affordability is becoming increasingly urgent for both current homeowners and potential buyers.
The government has a history of intervening in ways that ultimately drive prices higher.
Understanding the income-to-price ratio is key to diagnosing market health.
Short-term proposals may provide immediate relief but are not sustainable solutions.
Real change will only occur if we focus on increasing incomes or adjusting pricing structures.

"The government can propose remedies, but until we address the root issues of income and pricing, we’re only putting Band-Aids on a deeper wound."

As we navigate this complex housing landscape in 2026, it’s essential to ponder how our decisions—and those of our leaders—will impact the future of homeownership. This isn’t just about transactions; it’s about the broader economic health of our communities. I encourage you to reflect on these insights and reach out to the SLG Team if you have questions or need guidance on your housing journey.

Connect with us today for personalized support and advice.

Housing in 2026: Are Politicians Making It Worse?