BiggerPockets Daily America is Still Millions of Homes Short and the Gaps Are the Worst in These Markets
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Sep 2, 2025 The U.S. faces a staggering 4.7 million-home shortage, putting pressure on major cities like New York and L.A. Rising household formation and slow construction continue to widen the gap. Millennials and Gen Z are feeling the pinch, delaying homeownership due to affordability issues. On a brighter note, the podcast highlights ten affordable cities for homebuyers, including Detroit and El Paso, revealing hidden gems for savvy investors. It's a mix of urgent challenges and promising opportunities in the real estate landscape!
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Nationwide Housing Deficit Explained
- Zillow estimates the U.S. housing shortfall reached 4.7 million homes in 2023.
- The shortfall grows because household formation (1.8M) outpaced new construction (1.4M).
Supply Alone Won't Fix Affordability
- Affordability remains the biggest barrier even if supply rose.
- Median single-family price hit $412,000 and required mortgage income rose 60% since 2021.
Shortages Cluster In Expensive Metros
- The largest metro shortages concentrate in expensive coastal cities.
- New York, Los Angeles, Boston, San Francisco and D.C. account for the biggest deficits and high median prices.