The discussion surrounding housing affordability has a significant oversight. For many years, it has predominantly focused on the entry point: down payments, mortgage rates, inventory, and supply. While this effort is crucial and has yielded genuine progress over time, it aligns with a familiar approach to nearly every major housing policy intervention in the last century: get people inside, and everything else will follow.

However, that’s not the case. Emerging data is beginning to highlight this reality.

As the Low-Income Housing Tax Credit (LIHTC) nears its 40th anniversary, policymakers are rightly recognizing the impact of one of the most significant affordable housing initiatives in U.S. history. Yet, even this dialogue reflects the same trend. The emphasis continues to be on moving people into homes, with little consideration for what occurs afterward. A Hometap survey of 1,000 homeowners conducted in June 2026 revealed that fewer than 20% feel that homeownership has fully realized the American Dream. This disconnect is an issue that policy has yet to confront.

The policy playbook has concentrated on entry

Recent research by Realtor.com explored the evolution of federal housing legislation, showcasing an impressive historical narrative. Significant milestones such as the Homestead Act, the GI Bill, the Fair Housing Act, HERA, and the ROAD Act have all shifted the needle on who could access homeownership.

This progress is substantial. Currently, approximately 65% of U.S. households are homeowners. However, the policies that contributed to this statistic were largely focused on the entrance phase, with few designed to address the long-term financial realities of maintaining homeownership. The ongoing burdens of long-term homeownership have been accumulating for years, often unnoticed by policymakers.

The affordability challenge that remains unmeasured

While policymakers engage in discussions about supply and entry costs, an insidious burden has been silently growing. Rising home values, which are generally perceived as positive, actually translate to higher expenses and inaccessible equity for many homeowners.

Property taxes have surged by nearly 30% since 2019, and homeowners insurance premiums have increased by 24% between 2021 and 2024, outpacing inflation. Annual expenditures on home maintenance and repairs are projected to reach $518 billion by 2026, marking a record high. These expenses are not about entry; they are the costs of staying put, and they are escalating faster than wages, inflation, and any current policy discussions are accounting for.

A recent survey indicated that nearly two-thirds of homeowners (63.2%) now feel stressed by the expenses of homeownership, an increase from 55% just a year prior. This financial pressure is influencing their voting preferences, with 77% stating that a candidate’s cost-reduction plan would impact their decisions at the polls. Yet, only 26% believe there is a candidate capable of lowering their costs, while 71% anticipate rising expenses regardless of election outcomes. That statistic should be of serious concern to policymakers.

The wealth disparity aggravates this situation. Americans collectively possess almost $35 trillion in housing equity, which is largely immobilized and unable to absorb the very costs it generates. 80.3% of mortgaged homeowners have a rate below 6%, meaning refinancing or seeking a Home Equity Line of Credit (HELOC) could result in significant penalties for most. In fact, 35% of equity extraction applications were denied in 2024.

Federal policy has previously touched on equity access through HELOCs, reverse mortgages, and the mortgage interest deduction. However, these tools were designed for a different type of homeowner in a different market context. The entry point into homeownership may have expanded, but the ongoing costs associated with it have become increasingly burdensome.

Future policy directions

The next wave of housing policy doesn’t need a fresh start; it needs to catch up with current realities.

Policymakers should prioritize three key areas. First, property tax structures need reform to avoid penalizing long-term owners simply for rising home values. Some states have already taken steps to introduce targeted tax relief for these homeowners. Exploring methods like circuit breakers, which provide protection when tax burdens exceed income, and levy limits to prevent property taxes from escalating faster than inflation is essential, though such approaches come with their own trade-offs.

Next, the insurance market warrants attention. More states should implement policies that enhance the accessibility and affordability of insurance for the homeowners who most need it. This can include incentives for insurers to provide discounts for risk-reduction measures, such as installing storm-resistant roofs or flood barriers. The regulatory response to the surge in insurance premiums has not kept pace, and this gap must be addressed.

Lastly, and most fundamentally, is the issue of equitable access to home equity. Current home equity products were created for stable borrowers in predictable economic environments. Today’s homeowners face income variability, locked-in rates, and liquidity challenges. A significant 87% of homeowners express a desire for ways to access their equity without incurring additional monthly payments. Financial products and the regulatory frameworks that govern them must reflect the living realities of today’s homeowners.

The path forward

Homeownership was intended to be a solid foundation; for too many Americans, it is swiftly becoming a burden. For decades, Washington has concentrated on facilitating access to homeownership. Now, it’s time to address the financial responsibilities that come with it for those who are already homeowners.

Jeffrey Glass is the CEO and Co-founder of Hometap, a serial entrepreneur, business operator, and investor.

This column does not necessarily represent the views of HousingWire’s editorial team or its owners.

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