From 1969 to 2004, housing prices outpaced inflation two-thirds of the time – 25 out of 36 years. House price appreciation has beaten inflation each year since 1991. In first quarter 2005, U.S. house prices were nearly 10% ahead of the previous year. But that’s not good news for everyone.

According to a new poll by the Homeownership Alliance, a majority of Americans making less than $25,000 a year say the high cost of homeownership forces them to rent rather than buy a house. Seventy-one percent of all renters say high home prices force them to rent.

On the other hand, more than three-quarters of those earning $50,000 or more per year say the high cost of housing isn’t a problem when it comes to buying a home.

The so-called “affordability gap” has other consequences for low-income families. More than half of those surveyed say high housing costs may prevent them from living in communities with better schools.

Almost two-thirds say the high cost of housing may force them to stay in or buy a smaller home than they need or would like. Nearly half of those surveyed are considering leaving the area in which they live to find more affordable housing.

Apparently housing affordability for lower-income families has deteriorated over the past several years. The Census Bureau’s most recent American Housing Survey says more than 70% of families with incomes of less than $18,000 per year spend 30% or more of their income on housing; 46% spend more than half of their income on home mortgage or rental payments.

Housing affordability also varies by racial groups, according to the poll. Minority respondents were evenly divided on the question of whether high costs forced them to rent rather than buy. Just 28% of whites, however, cited high housing costs as the reason they rent. Nearly 45% of minorities reported commutes of an hour or more compared to 28% among whites.

The National Association of Home Builders-Wells Fargo Housing Opportunity Index shows an overall decline in housing affordability nationwide. The National Association of REALTORS® Housing Affordability Index shows a similar decline.

Of course, affordability varies by regions of the nation. Higher homeownership costs are most prevalent in the Northeast and West where 54% of those polled agree that costs may cause them to move to another area. Only 41% in the South and Midwest agree.

“The high cost of housing is placing enormous stress on families, affecting every aspect of their lives,” said Rick Davis, president of the Homeownership Alliance. “Whether it is education, work-life balance, or more general quality of life issues, the poll shows that families are feeling the pressure of high housing costs.”

Here in Texas, we rank just 45th out of 50 states in homeownership, according to the Census Bureau. The Texas Association of REALTORS®, through its new United Texas affordable-housing program, would like to change this statistic over time.