T
he US housing market is facing a severe inventory shortage, with approximately 3.8 million homes missing from the national supply. This gap has been exacerbated by restrictive local zoning, high construction costs, and policy uncertainty. New construction has increased in recent years, but it's still not enough to plug the supply hole.

    According to Realtor.com, the South is the region most in need of new homes, with a deficit of 1.15 million units. However, its rate of new construction is outpacing other areas, and experts predict that the supply gap could close within three years. In contrast, it would take decades for the West to fill its supply gap at the current pace, while the Northeast's inventory shortage may never be closed.

    Industry leaders are pushing for reforms to make housing more affordable and accessible. Realtor.com is launching a campaign called "Let America Build" to promote new construction and increase inventory. The National Association of Realtors (NAR) has also been lobbying federal and local leaders for more housing-friendly rules, citing the importance of homeownership as a bipartisan issue.

    The shortage has particularly impacted younger generations, with 1.6 million expected new households not formed last year due to low housing affordability. Experts warn that if home builders continue at their current pace, it could take several years or decades to close the supply gap in some parts of the country.