Household growth fell for third straight year in 2025, study finds

The U.S. housing market is experiencing a third consecutive year of slowing household growth in 2025, according to Harvard University's State of the Nation's Housing 2026 report. High costs and a short supply of housing units are identified as major factors behind this trend. This stagnation is crucial because it reflects broader economic challenges, potentially impacting everything from consumer spending to labor market dynamics. Chris Herbert from the Harvard Joint Center for Housing Studies explains the implications further, suggesting this could mean longer-term shifts in housing demand and policy responses.