5 takeaways from Harvard’s 2025 state of housing report – Smart Cities Dive

Report on the State of the Nation’s Housing 2025: An SDG Perspective

Executive Summary

A June 2025 report from the Joint Center for Housing Studies (JCHS) at Harvard University, “The State of the Nation’s Housing 2025,” highlights a severe housing crisis in the United States, exacerbated by economic uncertainty and potential shifts in federal policy. The findings present significant challenges to achieving several Sustainable Development Goals (SDGs), particularly those related to poverty, inequality, sustainable cities, and climate action. This report summarizes key takeaways for government leaders, framed within the context of the SDGs.

1. Record Unaffordability Undermines SDG 11 (Sustainable Cities and Communities)

The escalating cost of housing directly threatens SDG Target 11.1, which aims to ensure access for all to adequate, safe, and affordable housing. The JCHS report indicates that the nation is moving further from this goal.

• The median price for an existing single-family home reached a record $412,000 in 2024, a 60% increase since 2019 and five times the median household income.
• Existing home sales fell to 4 million in the last year, the lowest level recorded since 1995.
• Rental burdens have also reached a critical point, with a record 50% of renters spending over half their income on rent in 2023.
• This trend is widespread, with the number of cost-burdened renters increasing in 43 states between 2019 and 2023.

2. Declining Homeownership and Rising Homelessness: A Challenge to SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities)

The decline in housing accessibility is a primary driver of inequality and poverty, directly impacting progress on SDG 1 and SDG 10.

• For the first time since 2016, homeownership rates declined in 2024 to 65.6%, falling further to 65.1% in the first quarter of 2025.
• Households led by individuals under 35 experienced the most significant decline in homeownership, dropping by 1.4% in 2024.
• Homelessness reached a record high in 2024, marking a 33% increase since January 2020, a stark indicator of failure to provide basic needs and reduce poverty.

3. Governance and Partnerships: The Shifting Role of Government in Achieving Housing Goals (SDG 16 & SDG 17)

Potential reductions in federal support for housing necessitate stronger local institutions and innovative partnerships, aligning with SDG 16 (Peace, Justice and Strong Institutions) and SDG 17 (Partnerships for the Goals).

• Proposed federal budget cuts of approximately $33 billion from the U.S. Department of Housing and Urban Development (HUD) would diminish vital support for state and local housing initiatives.
• The JCHS report concludes that state and local governments must assume a greater role in addressing housing needs.
• While over 800 local housing trust funds and 350 municipal rental assistance programs exist, the scale of federal funding will be nearly impossible for local entities to replace, creating significant challenges for effective governance and service delivery.

4. Strategic Imperatives for Increasing Housing Supply: Aligning with SDG 9 (Industry, Innovation and Infrastructure) and SDG 11

The report emphasizes that increasing the housing supply is critical for alleviating the affordability crisis. These recommendations support the development of sustainable infrastructure (SDG 9) and communities (SDG 11).

Recommended actions for local governments include:

1. Implementing comprehensive zoning reforms.
2. Revisiting and amending restrictive land-use policies.
3. Creating innovative financing tools to support developers.
4. Providing design assistance for “missing middle” housing, such as accessory dwelling units (ADUs) and small multifamily structures.

5. Climate Change Impact on Housing: A Threat to SDG 13 (Climate Action) and Resilient Communities (SDG 11)

The growing frequency and severity of climate-related disasters pose a direct threat to the housing supply, undermining efforts to build resilient communities (SDG Target 11.5) and take urgent climate action (SDG 13).

• Climate-related disasters caused over $180 billion in damages in 2024.
• Recent events, including Hurricane Helene and California wildfires, damaged or destroyed over 20,000 homes.
• Over 61 million homes in the U.S. are located in areas with at least a moderate hazard risk, threatening housing stability and availability.
• These events contribute to rising home insurance premiums, which increased by 57% between 2019 and 2024, further exacerbating the affordability crisis.

Relevant Sustainable Development Goals (SDGs)

• SDG 1: No Poverty

  The article connects to SDG 1 by highlighting the financial strain on households due to housing costs. When a record 50% of renters spend more than half their income on rent, it pushes them towards or deeper into poverty, as less income is available for other basic needs like food, healthcare, and education. The surge in homelessness by 33% is a direct manifestation of extreme poverty.

• SDG 11: Sustainable Cities and Communities

  This is the most central SDG in the article. The entire piece revolves around the crisis of housing affordability, declining homeownership, and rising homelessness in cities and counties. It directly addresses the need for adequate, safe, and affordable housing. Furthermore, it discusses solutions related to sustainable urban planning, such as zoning reforms and revisiting land-use policies, and highlights the vulnerability of urban housing to climate disasters.

• SDG 13: Climate Action

  The article explicitly links climate change to housing issues. It states that “increasingly severe and frequent climate disasters represent a growing risk to housing supply,” citing over 20,000 homes damaged or destroyed by hurricanes and wildfires and $180 billion in damages. This directly relates to the need for climate action to protect communities and infrastructure.

• SDG 17: Partnerships for the Goals

  The article discusses the interplay between different levels of government. It notes that potential cuts in federal funding from the U.S. Department of Housing and Urban Development will require state and local governments to “play a larger role.” The mention of over 800 local government housing trust funds and 350 municipal rental assistance programs exemplifies the local-level partnerships being formed to address the housing crisis, highlighting the importance of multi-stakeholder collaboration.

Specific SDG Targets

1. Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums.

   This target is the core focus of the article. The text provides extensive evidence of the failure to meet this target, citing a record-high median home price of $412,000, a record 50% of renters being “cost-burdened,” declining homeownership rates, and a 33% surge in homelessness since 2020.

2. Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property…

   The article’s data on declining homeownership, especially the 1.4% drop among households led by people under 35, shows a regression in access to property ownership, a key economic resource. The unaffordability of both renting and buying homes limits access to the basic service of shelter for the poor and vulnerable.

3. Target 11.3: By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries.

   The article directly addresses this target by recommending that local governments “explore multiple methods to unlock additional housing development.” The specific suggestions, such as implementing zoning reforms, revisiting restrictive land-use policies, and providing design assistance for “missing middle” housing, are all measures aimed at improving sustainable urban planning and management.

4. Target 11.5: By 2030, significantly reduce the number of deaths and the number of people affected and substantially decrease the direct economic losses…caused by disasters…with a focus on protecting the poor and people in vulnerable situations.

   The article highlights the impact of climate disasters on housing, stating that Hurricane Helene and California wildfires “severely damaged or destroyed more than 20,000 homes.” It also quantifies the economic loss, noting that damages from climate-related disasters in 2024 amounted to “more than $180 billion.” This directly relates to the goal of reducing the impact of disasters on people and economies.

5. Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.

   The report points to a lack of resilience in the housing sector. It mentions that “more than 61 million homes in the U.S. are currently in areas with ‘at least moderate hazard risk'” and that home insurance premiums have “surged 57% from 2019 to 2024,” indicating that the housing stock is increasingly vulnerable and costly to protect against climate-related hazards.

Implied or Mentioned Indicators

• For Target 11.1 (Affordable Housing):

  The article provides several quantitative data points that can serve as indicators to measure progress:

  • Proportion of population with access to affordable housing: Implied by the statistic that “a record 50% of renters spending more than half their income on rent in 2023.”
  • Homeownership rate: Explicitly mentioned as having “declined in 2024 for the first time since 2016, falling to 65.6%.”
  • Rate of homelessness: The article states that homelessness “surged 33% since January 2020.”
  • Housing price-to-income ratio: Mentioned as the median home price ($412,000) being “five times the median household income.”

• For Target 11.5 (Disaster Impact):

  The article includes direct indicators of disaster impact:

  • Number of housing units damaged or destroyed by disasters: Stated as “more than 20,000 homes” from specific hurricanes and wildfires.
  • Direct economic loss attributed to disasters: Quantified as “more than $180 billion” in damages from climate-related disasters in 2024.

• For Target 13.1 (Climate Resilience):

  Indicators of risk and resilience are mentioned:

  • Number of homes in hazard-prone areas: Stated as “More than 61 million homes.”
  • Cost of insuring assets against climate risk: Indicated by the “57% surge” in home insurance premiums from 2019 to 2024.

• For Target 17.17 (Partnerships):

  The article provides indicators of local government action:

  • Number of local partnerships for affordable housing: Mentioned as “more than 800 local government housing trust funds and 350 municipal rental assistance programs.”

Summary of SDGs, Targets, and Indicators

Source: smartcitiesdive.com