The median home in America costs $403,000. Nearly 75% of households cannot afford a new one. A full-time minimum-wage worker would need to work 116 hours per week — nearly three full-time jobs — to afford a modest two-bedroom apartment. Groceries are up 30% since 2020. Childcare for two children costs more than rent in every state.
The federal government’s response: propose cutting HUD by 44% and eliminating the three largest community development programs.
Home prices
In no state, no metro area, and no county in America can a full-time worker earning minimum wage afford a modest two-bedroom rental. The national “housing wage” — what you need to earn per hour to afford rent without spending more than 30% of income — is $33.63. The federal minimum wage is $7.25. It has not been raised since 2009.
74.9% of U.S. households cannot afford a median-priced new home at current mortgage rates. The country is short 1.2 million housing units.
The crisis hits some states harder. New Hampshire’s median home price is $535,000 — a 78% increase since 2019. A buyer needs $158,000 per year to afford it. The state’s median income is roughly half that. Nevada’s median is $490,000, and a family needs $120,000 while the median income is $78,000.
Rent and eviction
52.4% of renters are cost-burdened — spending more than 30% of their income on housing. The country is short 7.2 million affordable rental units for extremely low-income renters.
Corporate landlords are part of the problem. A federal lawsuit alleged that RealPage — software used by landlords managing millions of units — coordinated rent prices by sharing nonpublic data between competing landlords. Kentucky’s AG sued the state’s largest landlords over algorithmic rent-fixing. Institutional investors now own over 700,000 single-family homes.
”We are a blue-collar town with white-collar house prices.”
Resident of Las Vegas, on the cost of living in a city built on service-industry wagesTariffs and costs
Trump’s tariffs add an estimated $17,500 to the cost of every new home. A 45% duty on Canadian lumber — the source of roughly one-third of U.S. softwood — drives the largest share. The National Association of Home Builders estimates tariffs will result in 450,000 fewer homes built through 2030.
The cost-of-living squeeze is not just housing. Grocery prices have risen 30% since 2020. Beef is up 14.8% year-over-year. In Mississippi, Senator Hyde-Smith told constituents who cannot afford beef that they have “so many proteins to choose from.”
Federal cuts
The Trump administration proposed cutting HUD by 44%. Three of the largest community development programs — Community Development Block Grants, HOME Investment Partnerships, and LIHEAP — would be eliminated entirely.
Section 8 housing choice voucher waitlists are closed in New York City, Massachusetts, Connecticut, and San Diego. Families wait years for a voucher. Cutting the program does not reduce demand. It eliminates the waitlist by eliminating the program.
Who This Affects
A single mother in Austin, Travis County, Texas
She earns $18 an hour managing a restaurant. Her rent is $1,850 for a two-bedroom apartment. That is 48% of her gross income. She has been on the Section 8 waitlist for three years. Childcare for her two children costs $1,600 per month. She applied for LIHEAP to help with summer electric bills. The program's proposed elimination would remove her last safety net.
Based on documented cases and public data.
An executive order signed in early 2025 criminalizes homelessness on federal land, following the Supreme Court’s Grants Pass ruling that cities can enforce anti-camping ordinances. The estimated homeless population reached 755,000 in 2025.
Childcare
The cost of childcare for two children exceeds rent in all 50 states. An estimated 134,000 families are pushed into poverty by childcare costs alone. The average family spends more on childcare than on food.
New Mexico became the first state in the nation to sign universal childcare into law, launching in November 2025. The program covers all families regardless of income. No other state has followed.
If Congress funds childcare
- Working parents stop choosing between a paycheck and care for their children
- Women re-enter the workforce at higher rates, boosting GDP
- The NM model proves universal childcare is possible at the state level
If federal programs are cut
- Head Start faces elimination, affecting nearly 1 million children
- Families already spending more on care than rent absorb higher costs
- Rural childcare deserts expand as providers close
Protect yourself right now
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Check your rent-to-income ratio. If you are spending more than 30% of gross income on rent, you are cost-burdened. If more than 50%, you are severely cost-burdened. Know the number before making other financial decisions.
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Apply for assistance before you need it. Section 8 waitlists are years long. LIHEAP helps with energy bills. 211.org connects you to local housing, food, and utility assistance. Apply now, not when you are in crisis.
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Contact your representatives about HUD cuts. The 44% proposed cut and CDBG elimination affect your community directly. Name the specific program and the local project it funds. Use Resist Bot — text RESIST to 50409.
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Ask your city council about corporate landlords. How many rental units in your city are owned by institutional investors? What is your city doing about algorithmic rent-setting? Attend a council meeting.
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Support state-level housing legislation. Washington passed a $244 million housing investment. New Hampshire passed a “homes near jobs” initiative. Vermont passed a $71.8 million housing bill. Your state can too.
Last updated May 24, 2026