The U.S. housing market is experiencing a notable decline in homeownership, with homeowner households falling for the first time in nine years. This trend is driven by a shortage of first-time homebuyers, who currently account for only 24% of home purchases, and an aging population with more homebuyers over 70 than under 35. High housing costs, especially in coastal regions like California where only 15% of residents can afford a home compared to 34% nationally, are pricing many Americans out of homeownership. Younger generations are increasingly looking to more affordable Midwestern markets. The aftermath of ultra-low borrowing costs during the COVID-19 pandemic has left many homeowners locked into high mortgage rates amid elevated home prices, reducing market mobility. Renting has become significantly more affordable than buying, with one of the widest affordability gaps on record. Legislative efforts are underway to improve housing accessibility and affordability for seniors, veterans, and low-income families in rural areas. Market analysts suggest the housing market may settle into a prolonged state of discomfort, neither favoring buyers nor becoming meaningfully more affordable in the near term.