Harvard Joint Center for Housing Studies Report Finds Housing Affordability Challenges Persist Despite Slowing Demand and Rising Vacancies

The Harvard Joint Center for Housing Studies (JCHS) released its annual State of the Nation’s Housing 2026 report on June 17, finding that housing affordability challenges continue to worsen even as housing demand softens and vacancy rates rise, with slowing construction limiting relief.

According to the report, household growth slowed for the third consecutive year in 2025 as weaker job growth, low consumer confidence, declining mobility, and reduced immigration dampened housing demand. Existing home sales remained at a 30-year low, while homeownership rates declined for a second consecutive year. At the same time, cost burdens for renters and homeowners continued to rise, reaching record levels for renters.

The report notes that recent increases in housing production have helped ease overall supply shortages, particularly in the rental market, but the shortage of housing affordable to lower-income households remains severe. JCHS cites National Low Income Housing Coalition data showing that 11 million extremely low-income households competed for just 3.8 million affordable and available rental units in 2024. The report also highlights the continuing loss of lower-rent housing stock and emphasizes the importance of federal resources, including the Low-Income Housing Tax Credit (Housing Credit), in addressing affordability challenges.

JCHS reports that recent Housing Credit provisions enacted through the One Big Beautiful Bill Act of 2025, including a permanent increase in Housing Credit allocations, could support the development of additional affordable rental homes over the next decade. However, the report concludes that significant federal investment remains necessary to address the nation’s shortage of deeply affordable housing.

During a panel discussion following the report’s release, NCSHA Executive Director Stockton Williams joined housing leaders from across the public, nonprofit, and private sectors to discuss the report’s findings and potential policy responses. The discussion examined the nation’s ongoing affordability challenges, the shortage of housing affordable to lower-income households, and the role of federal, state, and local policies in expanding housing supply and preserving affordability. A replay of the discussion is available on YouTube.