Moody's Talks - Inside Economics

Housers on the Housing Shortage

Jul 16, 2025
Jim Parrott, a housing policy expert, Ira Goldstein, a Philadelphia housing legend, and Maggie McCullough, CEO of PolicyMap, dive into the decade-long housing shortage crisis. They unpack surprising insights into regional housing discrepancies and the complexities behind the statistics. The conversation reveals a staggering deficit of 2 million housing units, while addressing the pressures faced by moderate-income earners amid rising rents. Together, they emphasize the critical role of data in shaping effective housing policies to meet community needs.
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INSIGHT

Granular Housing Shortage Reveals Truth

  • National housing shortage estimates vary widely, causing confusion in policy discussion.
  • Breaking down shortage by census tract reveals more precise market imbalances than a single national number.
INSIGHT

Equilibrium Vacancy Defines Shortage

  • Equilibrium vacancy rates derive from stable historic periods to assess housing shortage.
  • Current national housing shortage estimated around 800,000 units based on vacancy rates alone.
INSIGHT

Pent-up Demand Escalates Shortfall

  • Pent-up demand hidden in household formation decline adds about 1.2 million units to shortage.
  • Young adults living with parents reveal suppressed housing demand beyond vacancy rate gaps.
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