03/10/2026
The U.S. housing shortage has officially surpassed 4 million homes, and it's not getting better anytime soon.
A new analysis reveals that more than a decade of underbuilding has pushed the cumulative supply gap to 4.03 million homes in 2025, with young adults bearing the brunt of the crisis. Nearly 1.8 million Millennials and Gen Zers are unable to form their own households due to soaring costs and scarce supply, and the median age of a first-time buyer has hit an all-time high of 40. Even under the most optimistic building scenarios, closing the gap would take roughly seven years.
But there are signs of progress, construction is ticking up in key regions, new home affordability is improving, and the conversation around zoning and permitting reform is louder than ever.
