Housing affordability improves, but Honolulu remains among nation’s least affordable

UH News, July 2, 2026 

Owning a home remains out of reach for many Americans, but a new analysis from the University of Hawaiʻi Economic Research Organization (UHERO) suggests the housing affordability crisis may have reached its peak.

The analysis by UHERO Professor Byron Gangnes finds that housing affordability deteriorated sharply across the country beginning in 2021 as home prices surged and mortgage interest rates climbed. While affordability has improved modestly over the past two years because of rising incomes, slower home price growth and slightly lower mortgage rates, many housing markets remain unaffordable—especially Honolulu.

Using a measure based on what a median-income household can reasonably afford while spending no more than 30% of its income on housing costs, the analysis found Honolulu to be among the nation’s least affordable housing markets. In 2024, the median home price in Honolulu was about twice what a median-income household could afford.

Comparing Hawaiʻi to other U.S. areas

The report also found that cities once considered relatively affordable, including Charlotte, Atlanta and Dallas, have seen steep declines in affordability since the pandemic because home prices have risen much faster than incomes.

Nationally, affordability has improved since its recent low point as wage growth has helped households keep pace with housing costs and mortgage rates have eased from their highs. Even so, the report said many moderate-income families, particularly those earning below the median income, continue to face significant barriers to homeownership.

Gangnes noted that affordability can continue to improve over time as incomes rise and borrowing costs decline, but said policy changes will also be needed. The report points to strategies such as increasing housing construction, streamlining permitting, encouraging smaller homes and expanding assistance with down payments and mortgage costs to help make homeownership more attainable.

Read the entire insights post on UHERO’s website.

UHERO is housed in UH Mānoa’s College of Social Sciences.

UHERO: America’s housing affordability challenge: How big and how broad? - UHERO