The Housing Shortage Maybe Worse Than We Think

Uri Berliner at NPR wrote recently about the real crisis when it comes to the U.S. housing shortage, starter homes…(NPR)

• While the 4 million overall home shortage is a problem. It doesn’t hold a candle to the starter home shortage. “In 1982, 40% of the country’s newly constructed houses were entry-level homes. By 2019, the annual share had fallen to around 7%.”

• There is obviously a demand for starter homes so why aren’t they being built? Interestingly enough, there is actually a fair amount of agreement among builders, housing advocates, and policy wonks on this answer. “In the short term, there’s the high price of building materials…Longer term: zoning regulations that discourage construction, and opposition from local residents to increased housing density — i.e. allowing small lots suitable for entry-level homes.”

Berliner also discusses the role rising land costs have on discouraging starter home development and the impact luxury amenities have on home costs.