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merica’s housing crisis has been engineered piece by piece through a maze of regulations. Scholars argue that the problem is embedded in the very foundation of the U.S. housing system—a flaw that has accumulated over decades. They identify three primary culprits: restrictive zoning, land‑use barriers, and financial rules that choke supply and inflate prices.

    Joseph Gyourko, a Wharton professor of real estate and finance, notes that the United States has become exceptionally adept at stalling new construction. “There are countless ways to halt development,” he says, underscoring how zoning and regulatory hurdles dominate the crisis.

    Jim Tobin, president and CEO of the National Association of Home Builders, points out that regulatory costs alone make a huge dent in affordability. He estimates that 24 % of a single‑family home’s price—about $94,000—derives from local, state, and federal regulations. Tobin explains that some municipalities deliberately slow growth to keep housing scarce, adding both time and expense to projects. “Time is money,” he says. While developers wait for approvals, taxes rise and they must also fund infrastructure such as sewer, water, roads, and power, all of which inflate the final price.

    These mounting costs ultimately price buyers out and suppress new construction. E.J. Antoni, chief economist at the Heritage Foundation, argues that the market will not rebound until building becomes easier and borrowing costs fall. He advocates cutting government spending to ease interest‑rate pressure and rolling back burdensome regulations, which would, in turn, boost home production.

    Both economists and builders warn that the real danger is not just higher prices but the long‑term impact of sustained unaffordability on future homebuyers. Tobin cautions that delayed ownership postpones wealth creation for the next generation. “The more we postpone homeownership, the later we delay wealth building,” he says, highlighting the urgent need for policy change.