Why Americans Can't Afford Houses Anymore?

In 1949, a brand-new house in Levittown, New York cost $7,990, about two and a half years of a typical family's income. This July, a 1951 Levittown house (expanded since) sold for $765,000. In this animated explainer we follow what changed: the loan, the land, and the lock that keeps many owners from selling. Chapters 0:00 The $7,990 House 0:52 The Recipe 3:35 The Loan 5:52 The Land 9:14 The Lock 10:38 The Answer Where you live matters a lot: in San Jose, the monthly cost of a median-priced home takes about 82% of a middle-income family's pay. In Decatur, Illinois, about 16% (NAHB / Wells Fargo Cost of Housing Index). For education only, not financial advice. Payments are principal and interest on a 30-year fixed loan at the stated rates (the Levittown example adds a typical property tax bill); 20% down is used for illustration and isn't required. Figures are as of mid-October 2026 (the 30-year rate: 7.40% on 15 Oct 2026, Freddie Mac). Sources: Freddie Mac PMMS via FRED (mortgage rates, 15 Oct 2026); NAR existing-home sales (Sept 2026); U.S. Census Bureau (income 2025, ACS 2020-24, P-60 No. 7 for 1949, homeownership); BLS (CPI, Bulletin 1231); FHFA Working Paper 24-03 and the National Mortgage Database; Berg, Nielsen & Vickery, FRBNY Economic Policy Review (2018); Green & Wachter, JEP (2005); Glaeser & Gyourko, JEP (2018); NAHB / Wells Fargo; CRS IN12628 and Zillow (shortage estimates); Newsday (28 May 1947) via JLC; American Heritage; HNN; Bristol Township; Builder; News 12. #housing #mortgage #personalfinance