AEI Housing Center

 

The AEI Housing Center has three primary objectives:

• Provide transparent and objective mortgage and housing market trends at unprecedented levels of detail;
• Foster a stable system of mortgage finance that promotes sustainable homeownership; and
• Develop market-based solutions to the nation’s shortage of economical housing.

We pursue these objectives through the use of the best available data and by producing rigorous research on important policy issues.

 
 

Please click here to view the categorized library of all current and past housing center research and media mentions. 

Research & Reports

Report

Part 3: Findings from the AEI Housing Center May 2026 Zoning and Land Use Flexibility Survey

The first two reports in this series on the May 2026 Zoning and Land Use Flexibility Survey showed that Americans broadly support starter homes, smaller lots, light-touch density, and homes near jobs when these reforms are described in practical terms. This third report examines why that support weakens among some Americans and identifies two direct barriers to support.

Report

Part 2: Findings from the AEI Housing Center May 2026 Zoning and Land Use Flexibility Survey

This second report’s main finding is that support is broad, but not uniform. The clearest divides are ideology and perceived affordability severity.[2] Option 3 homes near jobs and amenities has the highest support among liberals, moderates, and conservatives. Option 2 small-scale infill in existing single-family neighborhoods is the most politically divided. Option 1 smaller lots in new neighborhoods falls in between. Respondents who see housing affordability as extremely or very serious are also much more supportive of all three reforms, especially with respect to Option 2, where the lift was 12 percentage points, about double the lift for Options 1 and 3. Perceived affordability pressure matters more than objective affordability pressure: people respond most strongly when they recognize affordability as a serious local problem.

Report

American Enterprise Institute

AEI Housing Market Indicators, June 2026

May 2026’s preliminary YoY HPA was 1.4%, the second lowest level of the series, up from 1.2% in April 2026 and down from 2.4% in May 2025.

Report

Part 1: Findings from the AEI Housing Center May 2026 Zoning and Land Use Flexibility Survey

The AEI Housing Center’s May 2026 Zoning and Land Use Flexibility Survey finds that Americans are open to practical housing-supply reforms. The survey tested three core reforms aligned with the Strong Foundations Playbook.

Report

AEI National Home Price Appreciation (HPA) Index: May 2026

National home price appreciation trends for April 2026.

Report

American Enterprise Institute

AEI Housing Market Indicators, May 2026

April 2026’s preliminary YoY HPA was 0.8% the lowest level of the series, down from 1.5% in March 2025 and 2.8% in April 2025.

Commentary

Op-Ed

States Are Stepping Up to Solve America’s Sousing Shortage

America faces a housing and affordability crisis—and the most effective response will come not from Washington but from the states. Local governments have restricted the supply of new homes for decades, while federal “solutions” have been expensive, inflexible and ineffective. States, by contrast, have the incentive and power to solve the problem, and they’ve already begun. More than 30 states are pursuing or enacting starter-home legislation that could create an abundance of naturally affordable homes. 

Op-Ed

Barron’s

Congress Passed a Major Housing Bill. It Won’t Help You Buy a Home.

Congress can’t unfreeze the market by lowering mortgage rates, which have been stuck above 6% since 2022, nor can it meaningfully shrink the six-million-unit housing shortage through the Act’s supply measures. Even if the president decides to sign it into law—a big “if” since he backed out of a signing ceremony on Wednesday—real progress on housing affordability will have to be made at the state level.

Op-Ed

The Wall Street Journal

Free-Market Forces Behind Fishtown’s Revival

Noah Gould’s excellent account of Fishtown’s revival rightly emphasizes neighborhood renewal’s human side: “New Fish” arriving, “Old Fish” staying, and a once-struggling working-class neighborhood finding new life. But the larger lesson lies in how Fishtown made a comeback: not through a master plan or top-down government program but by making private investment feasible.

Op-Ed

Greater Greater Washington

Montgomery County Could Fix Its Budget by Allowing Starter Homes

But there is a better option than raising taxes: Grow the tax base by legalizing the starter homes Montgomery County keeps blocking.

Op-Ed

Washington Examiner

The Pro-Family Case for Walkability

If you hear a politician or commentator mention “walkability,” that person is probably a Democrat or a liberal. That’s a shame, because walkability should be a conservative concern. Specifically, conservatives ought to help parents have more kids…

Post

AEIdeas

Loosening Bank Capital Rules Won’t Bring Banks Back to Mortgage Lending

Without confronting the legal, reputational, and structural factors that continue to shape bank incentives, easing capital requirements alone is unlikely to bring banks back into the mortgage market in a meaningful way.

Most Recent

Report

Part 3: Findings from the AEI Housing Center May 2026 Zoning and Land Use Flexibility Survey

The first two reports in this series on the May 2026 Zoning and Land Use Flexibility Survey showed that Americans broadly support starter homes, smaller lots, light-touch density, and homes near jobs when these reforms are described in practical terms. This third report examines why that support weakens among some Americans and identifies two direct barriers to support.

Report

Part 2: Findings from the AEI Housing Center May 2026 Zoning and Land Use Flexibility Survey

This second report’s main finding is that support is broad, but not uniform. The clearest divides are ideology and perceived affordability severity.[2] Option 3 homes near jobs and amenities has the highest support among liberals, moderates, and conservatives. Option 2 small-scale infill in existing single-family neighborhoods is the most politically divided. Option 1 smaller lots in new neighborhoods falls in between. Respondents who see housing affordability as extremely or very serious are also much more supportive of all three reforms, especially with respect to Option 2, where the lift was 12 percentage points, about double the lift for Options 1 and 3. Perceived affordability pressure matters more than objective affordability pressure: people respond most strongly when they recognize affordability as a serious local problem.

Op-Ed

States Are Stepping Up to Solve America’s Sousing Shortage

America faces a housing and affordability crisis—and the most effective response will come not from Washington but from the states. Local governments have restricted the supply of new homes for decades, while federal “solutions” have been expensive, inflexible and ineffective. States, by contrast, have the incentive and power to solve the problem, and they’ve already begun. More than 30 states are pursuing or enacting starter-home legislation that could create an abundance of naturally affordable homes. 

Report

American Enterprise Institute

AEI Housing Market Indicators, June 2026

May 2026’s preliminary YoY HPA was 1.4%, the second lowest level of the series, up from 1.2% in April 2026 and down from 2.4% in May 2025.

Report

Part 1: Findings from the AEI Housing Center May 2026 Zoning and Land Use Flexibility Survey

The AEI Housing Center’s May 2026 Zoning and Land Use Flexibility Survey finds that Americans are open to practical housing-supply reforms. The survey tested three core reforms aligned with the Strong Foundations Playbook.

Report

AEI National Home Price Appreciation (HPA) Index: May 2026

National home price appreciation trends for April 2026.

Op-Ed

Barron’s

Congress Passed a Major Housing Bill. It Won’t Help You Buy a Home.

Congress can’t unfreeze the market by lowering mortgage rates, which have been stuck above 6% since 2022, nor can it meaningfully shrink the six-million-unit housing shortage through the Act’s supply measures. Even if the president decides to sign it into law—a big “if” since he backed out of a signing ceremony on Wednesday—real progress on housing affordability will have to be made at the state level.

Op-Ed

The Wall Street Journal

Free-Market Forces Behind Fishtown’s Revival

Noah Gould’s excellent account of Fishtown’s revival rightly emphasizes neighborhood renewal’s human side: “New Fish” arriving, “Old Fish” staying, and a once-struggling working-class neighborhood finding new life. But the larger lesson lies in how Fishtown made a comeback: not through a master plan or top-down government program but by making private investment feasible.

Op-Ed

Greater Greater Washington

Montgomery County Could Fix Its Budget by Allowing Starter Homes

But there is a better option than raising taxes: Grow the tax base by legalizing the starter homes Montgomery County keeps blocking.

Report

American Enterprise Institute

AEI Housing Market Indicators, May 2026

April 2026’s preliminary YoY HPA was 0.8% the lowest level of the series, down from 1.5% in March 2025 and 2.8% in April 2025.

Report

American Enterprise Institute

Median First-Time Homebuyer Age at 33 Years in Quarter 1, 2026, Down 1 Year from Both Quarter 1, 2025 and Quarter 4, 2025

The median and average age for first-time buyers obtaining mortgage loans in Quarter 1:26 (33 and 36.2 years) was down 1 year and 0.6 year respectively from Quarter 1:25 (34 and 36.8 years). There has been a modest decline since 2000 when the median and average ages for first-time buyers stood at 35 and 37.9 years respectively.

Report

AEI State Housing Supply Legislative Update

2026: the year of “Starter Homes” and “Small Lot, Small Lot, Small Lot.” To date during the 2026 state legislative year: Total projected extra homes for enacted, passed, or pending bills having alignment with the…

Press

Discussing institutional investors in the housing market: Peter on C-SPAN’s ‘Washington Journal’

AEI Housing Center Codirector Tobias Peter discusses institutional investors in the housing market on C-SPAN’s ‘Washington Journal.’

Report

Housing Supply Is Not Primarily a Financing Problem

This study presents evidence that in many markets policy-induced costs and local feasibility barriers act as the primary constraint on new housing production and are more binding than capital availability alone, regardless of whether financial conditions are tighter or looser.

Report

Prevalence of GSE Appraisal Waivers

This report tracks trends for GSE appraisal waivers monthly and provides data on the risk characteristics of these loans. To download the most recent data, please click here. To read our comment letter to FHFA…