Housing Costs Strain Households

Housing Affordability Crisis Deepens Across the United States and Canada Amid Rising Costs

Housing affordability pressures are intensifying across the United States and Canada, with more households cutting spending or falling behind on payments. A LendingTree survey found that 59% of U.S. mortgage holders considered themselves “house poor,” while half reported missing or not making a full mortgage payment at least once during the previous year; rising property taxes, escrow shortages and insurance costs were major contributors, particularly for younger homeowners. Urban Institute research found that about one in five working-age U.S. renters struggled to pay rent in 2025, the highest rate recorded, with middle-income renters seeing the sharpest deterioration as their rate rose from 14.3% in 2024 to 21.6%; lower-income renters remained the most vulnerable at 27.8%. Rising rents, food, utilities, transportation and other essential costs, along with the expiration of pandemic-era assistance, contributed to the strain, while middle-income households remaining in the rental market increased competition for moderately priced units. In Canada, 23.2% of households lived in unaffordable housing in 2024, and 27.9% reported financial difficulties caused by rent or mortgage increases; Saskatchewan and Alberta each recorded core housing need rates of 13%.

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