Despite a surge in construction during the pandemic, the pace of building has not kept up with demand. In 2022, the US built 1.4 million homes, the highest number since the early stages of the Great Recession. However, the number of families increased by 1.8 million that year, further widening the gap.
The imbalance between supply and demand has led to skyrocketing home prices and rents. Across the country, there were approximately 8.09 million “missing households” in 2022 (individuals or families living with nonrelatives) compared to just 3.55 million housing units available for rent or sale.
Zillow’s research indicated that strict land-use regulations contribute to housing unaffordability by constraining supply in many markets, even those with higher incomes.
The Census Bureau reported that roughly 1.45 million homes were completed in 2023. While this marks progress, it falls short of addressing the extensive deficit.
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