The U.S. housing market remains structurally constrained by elevated home prices, elevated mortgage rates and limited supply, creating continued support for multifamily housing demand, according to a May 2026 report from New York Life Investment Management.
Since February 2020, home prices have increased by roughly 45 percent, based on the Zillow Home Value Index, and 54 percent, according to the S&P Cotality Case-Shiller U.S. National Home Price Index. At the same time, average 30-year fixed mortgage rates have remained at or above 6 percent for nearly four years, keeping homeownership costs elevated and weighing on transaction activity.
Looking ahead, New York Life Investment Management says a meaningful improvement in housing affordability would require lower mortgage rates, lower or stable home prices, or stronger income growth. But with the U.S. housing market still short by an estimated 3 million to 6 million units, constrained for-sale inventory and elevated
