From Coast to Coast, the Housing Shortage Is Growing

Housing shortages have traditionally been a problem for coastal cities like San Francisco, Los Angeles, New York, and Washington, but that deficit appears to be growing across the entire nation, The New York Times reports. Freddie Mac estimates that the U.S. is short 3.8 million housing units to keep up with household formation, which is only growing post-pandemic. The nationwide housing shortage doubled from 2012 to 2019, according to Up for Growth, a Washington-based policy and research group, and in that same time frame, supply worsened in 47 states including the District of Columbia.

As if homebuying conditions weren’t already discouraging pre-pandemic, a more recent affordability crisis is leaving prospective buyers with even fewer options, especially as interest rates soar and inflation continues its steady growth trajectory.

Today more families in the middle of America who could once count on becoming homeowners can’t be so confident anymore. And communities that long relied on their relatively affordable housing to draw new residents can no longer be so sure of that advantage.

“It’s like the cancer was limited to certain parts of our economic body,” said Sam Khater, the chief economist at Freddie Mac. “And now it’s spreading.”

Read more