The American dream of homeownership is facing a significant hurdle: a staggering 3.8 million home deficit. According to a recent analysis by Realtor.com, even with increased building efforts, closing this gap is projected to take until 2032 at the current pace. This decade-long period of under-building has created a severe strain on the housing market, disproportionately affecting younger generations, particularly Millennials and Gen Z, who find homeownership increasingly out of reach.
The report highlights that while 2024 saw a positive surge in single-family home completions, reaching a two-decade high of 1.36 million, it still falls short of meeting the pent-up demand. The median price for new builds sits at a hefty $446,300, and existing homes aren’t much more affordable at $396,900. These price points, coupled with rising interest rates, create a formidable barrier for first-time homebuyers.
Furthermore, the housing shortage isn’t evenly distributed across the nation. Regional disparities are stark, with the South and West demonstrating a quicker path to recovery, projected to close the gap within the decade. In contrast, the Midwest faces a daunting 41-year timeline, and the Northeast is witnessing the gap widening, presenting a particularly concerning outlook.
Recognizing the urgency of the situation, Realtor.com has launched the “Let America Build” campaign, a proactive initiative aimed at tackling the root causes of the housing shortage. This campaign focuses on modernizing outdated zoning policies, which often hinder development and limit housing supply. By fostering collaboration between lawmakers, homebuilders, and housing advocates, Realtor.com seeks to create a more streamlined and efficient building process.
“America’s housing shortage is holding back economic growth, driving up costs, and making it harder for millions of families to find a home,” stated Realtor.com CEO Damian Eales. “Through Let America Build, we’re rallying the right voices to push for real solutions that will unlock supply and make homeownership more attainable.”
The “Let America Build” campaign emphasizes the importance of strategic policy changes to unlock housing supply, ultimately making homeownership more attainable for millions. The belief is that by addressing the housing shortage, not only will individual families benefit, but the entire economy will experience a positive ripple effect. This initiative serves as a call to action, urging stakeholders to work together to create a more accessible and sustainable housing market for future generations.
Original Source: Inman News, McPherson, M. (2024, March 12). The US is short 3.8M homes — Realtor.com wants to fix that.
