Exchanges ‘Affordability’: Consumer Concerns and Government Proposals
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Feb 10, 2026 
Alec Phillips, Goldman Sachs political economist focusing on policy impacts, and David Mericle, Goldman Sachs macro economist tracking income, inflation, and housing. They discuss why housing is the center of affordability worries. They unpack housing supply constraints, mortgage and down payment pressures, consumer perceptions of price pain, and what policy proposals are being considered.
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Real Income Recovered But Housing Lags
- Real income is roughly back to its pre-pandemic trend, with wage gains roughly offsetting price rises.
- Yet housing costs, especially for owner-occupied homes, remain a clear outlier driving affordability concerns.
Housing Shapes Wealth And Mobility
- Housing is special because it serves as the primary saving vehicle for lower-income households.
- Lack of access to owner-occupied housing also limits access to better schools and job opportunities.
Administration Reaction Is Narrow And Reactive
- The administration's response has been reactive and focused on housing and select prices rather than a comprehensive income agenda.
- There has been little focus on wage policies, relying more on one-off fiscal measures like tax refunds.