The U.S. housing market remains 3.8 million homes short, even as new home construction reached its highest level in nearly 20 years in 2024, according to a new analysis from Realtor.com.
The report found that 1.6 million homes were completed last year, marking a significant increase in housing supply. However, demand still outpaces supply, with affordability remaining a major challenge. Builders continue to face zoning restrictions, permitting delays, and rising material costs, making affordable housing difficult to produce.
At the current pace of construction, it would take an estimated 7.5 years to close the housing gap. The shortage has particularly impacted young households, for whom homeownership is increasingly out of reach on mid-to-average salaries.
Regionally, the South has the largest shortage in absolute numbers, but the Northeast has the highest housing gap relative to construction levels, followed by the Midwest and West.
Sources
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