The housing crisis in the United States is no longer confined to coastal cities; it has become a nationwide issue, affecting cities and towns across the country. The shortage of homes, both for purchase and rental, has led to skyrocketing prices, making homeownership increasingly unaffordable for millions of Americans.
The Extent of the Housing Shortage
According to a recent analysis from Realtor.com, the United States is not building enough homes to keep pace with the number of people setting up their own households. The gap between single-family home constructions and household formations has grown to an alarming 6.5 million homes between 2012 and 2022.
In the same decade, 15.6 million households were formed, but only 13.3 million housing units were started, and merely 11.9 million were completed. This shortfall is not just in single-family homes. When multi-family construction, which predominantly consists of rental units, is included, the gap reduces to 2.3 million homes. However, this still represents a significant shortage in housing availability.
The Impact on Prices and Affordability
The shortage of housing supply in the face of strong demand has led to a surge in home prices, which have risen by more than 30% over the past couple of years. This increase has pushed homeownership out of reach for many Americans. Rents, too, are rising sharply, adding to the financial burden on households.
The housing crisis is particularly severe in some regions. For instance, Los Angeles, the most underproduced metro in the country, is lacking nearly 400,000 homes, representing 8.4% of the housing needs of the region.
The Role of Zoning Rules
One of the key factors contributing to the housing shortage is outdated zoning rules. In many places, zoning regulations allow for either large apartment buildings downtown or single-family homes on large lots, with little provision for anything in between. This has resulted in a “missing middle” of more affordable townhouses or smaller starter homes.
The Way Forward
Addressing the housing crisis requires a multi-pronged approach. Firstly, there is a need to increase both single-family and multi-family housing supply to restore balance to the housing market and alleviate pressure on both sale and rent prices.
Secondly, outdated zoning rules need to be revised to allow for a greater diversity of housing types, including more affordable townhouses and smaller starter homes.
Lastly, there is a need for greater public awareness and involvement in local zoning meetings and discussions with local representatives. The housing crisis is a local issue that requires local solutions, and public involvement is crucial in driving the necessary changes.
In conclusion, the housing crisis is a complex issue that requires urgent attention. With concerted efforts from all stakeholders, it is possible to address the housing shortage and make homeownership more affordable for all Americans.