The US is in a housing affordability and availability crisis. The 2008 housing market collapse and the COVID-19 pandemic contributed to a significant decline in both single and multi-unit home construction from which we have never fully recovered. Current estimates indicate that there are approximately 3-4 million fewer homes than the population requires. During a period with relatively high inflation, the prices of homes have increased far beyond other costs. Adjusted for inflation, median home prices have increased by 123% since 2010. Beyond climbing house and rental prices, other home costs like property insurance and utility bills have also been on the rise. The latest US Census Bureau data indicate that nearly half of US households are considered “cost-burdened,” meaning that they spend over 30% of their income on housing-related costs.
The problems with US housing extend beyond a shortage of available units. Much of the current housing stock is aging and needs substantial renovation, but the high costs can deter owners from making necessary improvements. Restoring existing units is 25% to 45% cheaper than building new homes, suggesting that this is a cost-effective way to preserve the housing supply.
There is growing interest in Congress to address the housing affordability crisis.
Proposals include:
