The United States remains nearly four million homes short of meeting demand, despite a surge in new home construction, according to a new analysis from Realtor.com.
While 1.6 million homes were completed in 2024, marking the highest level in nearly two decades, the total housing gap remains at 3.8 million. The report attributes this ongoing shortage to the historical backlog of unmet demand and continued challenges in affordability and accessibility.
Although both new and existing housing inventory increased in 2024, availability remains below pre-pandemic levels, and affordability remains a significant obstacle for many buyers. Rising zoning and permitting restrictions, as well as higher material costs, continue to limit builders’ ability to develop affordable housing.
According to the analysis, at the current pace of construction, it would take approximately 7.5 years to close the housing shortage.
The housing gap has disproportionately impacted younger households, making homeownership increasingly difficult for individuals earning mid-to-average salaries.
Regionally, the South has the largest shortage in terms of total units, though it has seen the highest level of construction activity. The Northeast has the most severe housing deficit relative to its size, followed by the Midwest and West.
As the demand for housing continues to grow, addressing regulatory and financial barriers will be essential to narrowing the gap and improving accessibility for future homebuyers.
With input from the Hill.
