BiggerPockets Daily The U.S. Had a Construction Boom, But the Housing Deficit is Somehow Worse
Jul 24, 2025
Despite a construction boom, the U.S. faces a significant housing deficit of 4.7 million homes, driven by high household formation. Major cities like New York and L.A. grapple with affordability issues, pushing younger generations to delay homeownership. Yet, there’s hope in overlooked markets such as Detroit and El Paso, where homes under $300K are attracting investors. Discover why these affordable cities are golden opportunities for those looking to navigate the turbulent housing landscape.
AI Snips
Chapters
Transcript
Episode notes
Housing Shortage Worsens Despite Construction
- The U.S. housing shortage is worsening with a 4.7 million-home deficit despite building 1.4 million new homes last year.
- Household formation outpaces construction, causing high demand and affordability crises for millennials and Gen Z.
Metro Housing Deficits and High Prices
- Major metros like New York and L.A. face housing shortages of hundreds of thousands of units and median home prices over $1 million.
- High demand and limited supply in these expensive cities intensify affordability challenges.
Housing Shortage to Persist Long-Term
- Even with 1.63 million homes built last year, the country faces a 4.7 million unit housing shortage.
- The National Association of Home Builders predicts this shortage may last through the decade or longer.