‘Today’s crisis is a product of government errors, not greedy landlords, institutional investors, and so-called market failure.’
SCHAUMBURG, IL (May 5, 2026) – The United States is suffering an affordability crisis, especially a housing affordability crisis, that has Americans very worried about the future.
A new paper from The Heartland Institute, Housing Affordability: America’s Short-Term Crisis and Long-Term Problem, explains in easily understandable terms and illuminating charts what really caused the housing affordability crisis, why it hit Americans under the age of 40 particularly hard, what will stop that damage and reverse it, and how to achieve a long-term solution to America’s housing affordability problem: increasing the stagnant supply of housing.
While more housing is the answer, Congress is considering restricting investment in housing, expanding government programs, and injecting more taxpayer money into the market. Cities are imposing rent freezes, tighter regulation, new zoning schemes, and other restrictions. Even most self-identified conservatives support this approach, a poll by The Heartland Institute and Rasmussen Reports recently found.
These and other proposed government interventions will not work, however, because the problem is much bigger than alleged greed and insufficient government spending. Monetary inflation in the early 2020s and a subsequent large increase in interest rates aggravated a long-term housing affordability crunch and turned it into a housing crisis. Reducing inflation will alleviate the short-term crisis. The nation must then turn to the long-term problem: a stagnant supply of housing.
Housing affordability has been a problem in the United States for many decades as a rapidly expanding population has been forced into a stagnant housing supply since the Great Recession of 2008-2009. A temporary but vicious bout of inflation caused by excessive government spending during and after the COVID-19 pandemic aggravated the problem into a crisis.
Focusing on those factors is the key to solving the nation’s affordability crisis: expand supply and ensure the reliability of the U.S. dollar. Housing Affordability: America’s Short-Term Crisis and Long-Term Problem explains why that is so and identifies the government policy actions that can solve the problem.
The Glenn C. Haskins Emerging Issues Center at The Heartland Institute serves as the “tip of the spear” in identifying and confronting the underreported challenges that threaten American sovereignty, individual liberty, and free-market capitalism. The EIC brings these emerging threats to the forefront of public and political awareness, empowering citizens and policymakers alike to act in defense of freedom and a thriving free-market society.
The following quotes, provided by Heartland Institute experts, can be used for attribution:
“Housing affordability is a serious problem in the United States, with particularly harsh effects on those under the age of 40. Policymakers, legislators, and other government leaders are proposing many solutions, nearly all of which involve more government intervention. That is how these so-called reforms usually go: they pretend to reduce the government’s power while actually expanding it.
“These proposed solutions will backfire badly because they are based on a misunderstanding of the causes of the affordability crisis. Today’s crisis is a product of government errors, not greedy landlords, institutional investors, and so-called market failure. The proposed interventions are also wrong from a practical perspective: pushing investors out of the market will raise prices, not reduce them, because it will decrease investment and weaken the position of buyers, who will have to compete for an even-smaller supply of the product they want and need so badly.
“Today’s housing market is anything but free. Restoring a true market is the only way to expand access to the American Dream. The way to renew the American Dream is for government to get out of the way and let Americans do things the American Way.”
S.T. Karnick
Senior Fellow
The Heartland Institute
[email protected]
“The number one issue for nearly all Americans is affordability, particularly the high cost of housing. Although there are many factors driving the price of housing, the most sensible solution is to build more housing. However, NIMBYism, restrictive zoning practices, ridiculous environmental regulations, and many more anti-free market forces are preventing new home starts where they are most needed. Runaway inflation has exacerbated the housing crunch, especially for young buyers seeking starter homes. The housing market, like so many other sectors, has been undermined by big government, big spending, and big regulation. The obvious solution to the affordability crisis is less government intervention and more free market magic via the all-wise invisible hand.”
Chris Talgo
Editorial Director
The Heartland Institute
[email protected]
“There is no question that America is facing a real housing affordability crisis, and younger generations are feeling the consequences most acutely. As homeownership drifts further out of reach, more Americans are growing disillusioned with the promise of free markets and becoming more open to expansive government solutions, even socialism. But the reality is that this crisis was created by policy failures, and the path forward is not to double down on government control but rather restore a true market that allows supply to meet demand and opportunity to expand.”
Donald Kendal
Director, Emerging Issues Center
The Heartland Institute
[email protected]
If you’d like to interview a Heartland Institute expert on this topic or other topics, please contact Donald Kendal, the director of the Glenn C. Haskins Emerging Issues Center at [email protected], or contact Vice President and Director of Communications Jim Lakely at [email protected]. You can also call/text Jim at 312-731-9364.
Donald Kendal is Director of The Heartland Institute’s Socialism Research Center. Kendal is also the host of Heartland’s In the Tank Podcast.
S. T. Karnick is a senior fellow and director of publications for The Heartland Institute.
Chris Talgo is the Editorial Director for The Heartland Institute and a fellow for Heartland’s Glenn C. Haskins Emerging Issues Center.
