“The
unfortunate
fact
is
that
we
still
don’t
have
enough
housing
in
this
country
for
people
who
need
it.

Construction
has
helped
prevent
the
housing
deficit
from
ballooning,
but
it
hasn’t
yet
begun
to
close
the
gap,”

Orphe
Divounguy,
senior
economist
at
Zillow,
said
in
a
statement.

“We
know
what
works:
lower
building
restraints
to
allow
for
more
density
and
less
expensive
housing.
More
of
these
measures
at
the
local
level
can
help
get
more
homes
built
and
begin
to
ease
this
outsize
financial
burden
for
millions
of
Americans.”

Construction
slows
but
doesn’t
reverse
deficit

A
spike
in
home
construction
due
to
pandemic-driven
demand
helped
to
slow
the
growth
of
the
housing
deficit
—
but
it
has
not
been
reversed,
according
to
Zillow.

In
2023,
the
deficit
rose
by
159,000
homes
—
a
slower
increase
compared
to
the
257,000-unit
jump
in
2022.
Among
the
50
largest
U.S.
metro
areas,
the
most
severe
housing
deficits
were
found
in

New
York,

Los
Angeles,

Boston,
San
Francisco
and
Washington,
D.C.

The
U.S.
added
1.4
million
housing
units
in
2023,
up
from
1.3
million
in
2022,
after
accounting
for
demolitions.
Meanwhile,
the
number
of
households
also
grew
—
although
at
a
slightly
slower
pace,
resulting
in
fewer
families
needing
to
share
housing
compared
to
the
previous
year.

Still,
an
estimated
8.1
million
families
were
living
with
non-relatives
last
year.
While
some
choose
to
live
with
roommates,
Zillow
data
suggests
that
many
would
prefer
separate
housing
if

affordable
options
were
available.

Affordability
limits
remain
a
major
obstacle

Homeownership
remains
out
of
reach
for
many
Americans.
In
2019,
a
median-income
household
could
afford
to
purchase
a
typical
home.
As
of
2024,
Zillow
reported,
that
same
household
would
require
an
additional
$17,000
in
annual
income
to
afford
the
mortgage
payments
on
a
typical
home
priced
at
$368,000.

That
was
only
the
tip
of
the
iceberg
as
mortgage
affordability,
based
on
a
20%
down
payment,
required
more
than
$50,000
per
year
in
additional
income
in
several
of
the
largest
metro
areas.

Mortgage
rates
have
dipped
slightly
from
last
year,
but
affordability
remains
a
significant
barrier
—
particularly
for

first-time
buyers.

Zillow
found
that
cities
with
fewer
restrictions
on
construction
activity
saw
faster
responses
to
increased
demand
during
the
COVID-19
pandemic.
These
markets
experienced
slower
home-price
and
rent
growth
compared
to
cities
with
tighter

zoning
and
development
rules.

Small
changes
in
zoning
in
large
metro
areas
—
such
as
permitting

accessory
dwelling
units
(ADUs)
or
multiunit
homes
like
duplexes
and
triplexes
—
could
result
in
the
construction
of
millions
of
additional
homes,
Zillow
added.

Builders
completed
1.45
million
housing
units
in
2023,
and
that
momentum
continued
into
2024,
with
1.63
million
units
completed
—
the
highest
annual
totals
since
2007.

Millennials
accounted
for
the
largest
share
of
households
“doubling
up”
with
non-relatives
in
2023,
representing
38%
of
such
living
arrangements.
They
were
followed
by
Gen
Z
at
29%,
Gen
X
at
17%,
and
baby
boomers
and
older
generations
at
16%.