Housing is the Foundation of an Affordable America

For millions of families, the cost of buying, renting, repairing, or keeping a home has become the single greatest barrier to financial stability and economic mobility. Recent reports show that in the second quarter of 2026, the average American family spent 34% of its income on monthly mortgage payments, reversing steady declines since costs hit record highs in 2023. Housing production collapsed after the Great Recession and never truly recovered, leaving a deficit of at least 3.7 million units and driving up prices. Meanwhile, mortgage lending standards have tightened, making it harder for borrowers with moderate credit to get a fair shot at homeownership.

These complex issues demand a multifaceted response — one that goes beyond buzzwords. Communities and states have started their own programs to fill the gaps, but we need a national strategy that builds on proven solutions in every corner of the country.

Preserve existing homes, infrastructure, and communities.

Building new housing is fruitless if we let existing homes fall apart or fall prey to investors that drive up prices and drive out residents. Nationwide, 6.6 million low-income homeowners have unmet home repairs that can threaten their ability to stay in their current homes and communities. Left unaddressed, a leaky roof, a broken HVAC system, or faulty electrical wiring can push a family out of what’s usually their greatest asset, their home.

Cities have recognized this and worked to build innovative programs that leverage public and private funds to offer low-or-zero interest loans or grants to people who would otherwise be shut out financing home repairs. Congress can accelerate these solutions by providing funding to implement the Whole-Homes Repair Act, included in the recently enacted 21st Century ROAD to Housing Act, to assist states in establishing home repair programs for low-income families.

Protecting generational housing and assets is also a way we can help preserve our current housing stock. Across the country, over 500,000 residential properties – representing $32 billion in value – are in a state of legal limbo known as Heirs’ Properties. In these cases, tangled titles mean that homeowners cannot easily access the equity in their home, obtain capital for repairs, or sell at market rates, leaving them vulnerable to disrepair and forced sales.

Locally, community development organizations and cities are working to identify and remedy tangled titles before investors swoop in to take advantage. In Jacksonville, Florida, a LISC-powered program has helped resolve 2,200 estate plans and 180 probate cases so far, preserving nearly $54 million in home value. The HEIRS Act before Congress could provide support nationally for individuals navigating the legal process of clearing titles and protecting inherited property.

Build more starter homes.

We also need to create new homes that first-time homebuyers can afford. The National Association of Realtors recently reported that the median first-time homebuyer in 2025 was 40 years old, the highest level ever recorded. With interest rates, costs of materials and costs of labor steadily rising, homebuilders are finding it increasingly difficult to build affordable homes for this market.

The bipartisan Neighborhood Homes Investment Act offers an opportunity for Congress to establish a federal tax credit to bridge the gap between the cost of building or rehabilitating a modest home and its affordable sale price. The legislation could support the development or rehabilitation of more than 500,000 homes.

Prioritize creating more affordable rental housing.

The affordable housing shortage is particularly acute for low-income renters. The current market simply does not produce enough housing at price points these families can afford. At just 35 affordable and available rental homes for every 100 extremely low-income renter households, it will take years to fill the gap.

Local efforts, including the Detroit Housing for the Future Fund or the Charlotte Housing Opportunity Investment Fund, demonstrate how communities can advance affordable housing, expand access to capital, and drive impactful development. A few important changes in the recently passed 21st Century Housing Act, including the expansion of the Rental Assistance Demonstration program and the Low-Income Housing Tax Credit, could also help communities across the country preserve and expand affordable rental housing.

Put underused land to work.

Expanding housing opportunities also means reconsidering how we use land and existing buildings. Not every new unit needs to rise from an empty swath of ground. Repurposing what’s already there is smarter — and cheaper — than starting from scratch. That is the logic behind the Yes in God’s Backyard (YIGBY) movement, which encourages faith-based organizations to turn their underused properties into affordable housing. With developable land at a premium and some church buildings sitting half-empty, YIGBY lets long-standing community hubs continue to serve their neighbors while putting existing investments back to work.

States across the country, like California, Florida, and Oregon, have advanced YIGBY laws that remove zoning obstacles, though congregations still need partners to support development. Congress can support these efforts through the proposed Yes in God’s Backyard Act, which would enable faith-based organizations to build more affordable housing, faster.

Housing alone will not solve the affordability crisis.

All these efforts, however impactful, won’t help if families cannot afford to live in their communities. Affordable housing must be paired with access to and training for well-paying jobs because boosting economies and investing in small businesses and workforce development is essential to building thriving communities.

As voters prepare to elect a new Congress in November, lawmakers have an opportunity to learn from promising local and state efforts and translate those practices into federal policy that can help the entire country. The goal should be clear: a housing strategy that builds more homes, preserves the homes families already have, and advances opportunities for future generations.

Michael T. Pugh is president and CEO of Local Initiatives Support Corporation, one of the country’s largest community development organizations.