The Affordability Problem  /  Film one

The Affordability Problem

8 minutes 35 seconds · published 1 September 2026 · figures current to August 2026

Every figure in the film

Each one, what it's built from, and the date it's true as of. Nothing here is a forecast.

FigureValueSeriesAs of
Income needed to qualify, 2019$51,557CSUSHPINSA + MORTGAGE30USOct 2019
Income needed to qualify, today$113,840CSUSHPINSA + MORTGAGE30USAug 2026
Qualification hurdle, then → now+120.8%derivedAug 2026
Median pay, same window$936 → $1,251LEU0252881500QQ4 2019 / Q2 2026
The same house, then / now$327,100 → $517,216MSPUS + CSUSHPINSAQ4 2019 / May 2026
Down payment, then / now$65,420 → $103,443derived, 20% downAug 2026
Mortgage rate, then / now3.69% → 6.65%MORTGAGE30USOct 2019 / 20 Aug 2026
Money supply, a generation apart6.2× largerM2NS, Jul 1996 → Jul 2026Jul 2026
Money supply added, Feb 2020 → Feb 2022$6,232.8BM2SLFeb 2022
— as a percentage+40.2%M2SLFeb 2022
Largest 24-month increase on recordconfirmedprior max +28.8%, 1975–77series from 1959
Fed balance sheet, Feb 2020 → peak$4.16T → $8.97TWALCL13 Apr 2022
Fed funds, before / peak0.08% → 5.33%FEDFUNDSFeb 2022 / Aug 2023
Length of the hike cycle16 monthsFEDFUNDSMar 2022 → Jul 2023
“Fastest in over forty years”confirmed+5.25 pts; only 1980–81 fasterAug 2023
Mortgage rate, peak7.79%MORTGAGE30USweek of 26 Oct 2023
Price alone would have added+58.1%derived, rate held at 3.69%May 2026
Rate alone would have added+39.6%derived, price heldAug 2026
Both together+120.8%1.581 × 1.396Aug 2026
If you added them instead+97.8%the mistake, shown struck throughAug 2026
The payment, same house, four ways$1,203 / $1,902 / $1,680 / $2,656derived, P&I, 20% downAug 2026
Full-time workers who qualify, 201947%LEU0252881500QQ4 2019
Full-time workers who qualify, todayabout 21%LEU0252881500Q + LEU0252911500QQ2 2026
Households who could qualify61% → 38%Census ASEC via IPUMS CPS2019 / 2024
Home price since 2019+58.1%CSUSHPINSA, repeat salesMay 2026
Rent since 2019+34.1%CUSR0000SEHAJul 2026
Inflation, peak 12-month change+9.06%CPIAUCNSJun 2022
Owners holding a rate below 3%20.0%FHFA National Mortgage DatabaseQ3 2025
Lock-in effect1pp gap → 9% fewer movesFonseca & Liu, J. Finance, 20242024
Homes for sale, bottom of the freeze → now562,453 → 1,126,252ACTLISCOUUSMar 2023 / Jul 2026
The Fed has cut, peak → now5.33% → 3.63%FEDFUNDSAug 2023 / Jul 2026
On hold sinceJanuary 2026FEDFUNDSAug 2026
Months since the rate peak34derivedAug 2026

Two of these have a clock on them. “On hold since January” breaks at the next cut, and “34 months” becomes 35 on 26 October 2026.

Sources

All public, all free to check. FRED codes in the right column.

WhatPublisherSeries
Money supplyFederal Reserve H.6M2SL, M2NS
Home pricesS&P CoreLogic Case-ShillerCSUSHPINSA
Median sale priceCensus / HUDMSPUS
Mortgage ratesFreddie Mac PMMSMORTGAGE30US
Fed policy rateFederal ReserveFEDFUNDS
WagesBLS, usual weekly earningsLEU0252881500Q, LEU0252911500Q
RentBLS, rent of primary residenceCUSR0000SEHA
InflationBLS Consumer Price IndexCPIAUCNS
Homes for saleRealtor.com active listingsACTLISCOUUS
Fed balance sheetFederal Reserve H.4.1WALCL
Rate distributionFHFA National Mortgage Database
Household incomesCensus ASEC via IPUMS CPS
Lock-in effectFonseca & Liu, Journal of Finance, 2024
National economiesIMF World Economic Outlook, Apr 2026
Rent on a comparable houseRentometer, mid-year report H1 2026

Method

Income needed to qualify

20% down, a 28% front-end ratio, principal and interest only, on a 30-year fixed at the rate quoted for that date. The 28% front-end ratio is the lender's conventional test: housing payment against gross pay.

“The same house”

One house, not the mix of houses that happened to sell. The 2019 median sale price is carried forward by Case-Shiller, which is a repeat-sales index — so what you're seeing is one asset repriced, not a shift toward bigger or smaller homes. The raw median sale price today is lower than the figure the film uses; that gap is mix, not error.

Rates

Mortgage rates are weekly survey averages. The 7.79% peak is the week of 26 October 2023. Where a rate is quoted as “now,” it is the most recent weekly print at the time of publication. The Fed's own rate is the effective rate, monthly average — where the film says “five and a half,” that is the top of the target range, and 5.33% is what the rate actually did.

Why price and rate multiply

A 58.1% price rise and a 39.6% rate effect do not add to 97.8%. They compound: 1.581 × 1.396 = 2.208, or +120.8%. The film shows the addition struck through, because the mistake is the point.

Who qualifies

The worker figures are full-time workers, from the weekly earnings distribution — not the population, and not households. The household pair is dated 2019 against 2024, because household income data stops at 2024; it is the honest apples-to-apples comparison, and it counts everyone, including retirees and people not trying to buy.

“The bottom of the freeze” is not the bottom of the series

If you pull ACTLISCOUUS you will find a lower reading than the one the film uses: 346,514 in February 2022, against the 562,453 quoted. That is not an error, and the wording is the reason. February 2022 is a month before the Fed's first hike — it is the bottom of the pandemic buying frenzy, when everything for sale sold. The freeze starts with the rate rise in March 2022, and its own bottom is March 2023. That is what “the bottom of the freeze” means, and it is the comparison the film makes. Measured from February 2022 instead, listings are up 3.25× rather than 2.00× — the film takes the smaller number, because it is the one that answers the question being asked.

Revisions

Some of these series restate recent months after the fact. Case-Shiller has already revised May 2026 from the 335.104 the film used to 335.430, a change of +0.10%, which moves the qualifying income by about $110. Figures are quoted as published, and every one is dated. Where a revision is large enough to change a claim, it goes in Corrections below, with both values and the date.

Inflation

Nothing on this site or in the film is adjusted for inflation. Where inflation appears it is reported as what it did, from the published index — never used to deflate someone's income.

Corrections

None yet. When there are, they appear here — what was wrong, what it is now, and the date it changed. Nothing gets quietly edited. Found an error? Say so in the comments on the film, and cite the series.