BiggerPockets Daily Is Local Politics Ruining the American Dream?
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Sep 5, 2025 America faces a staggering housing shortage, currently estimated at 5 to 6 million homes, potentially escalating to 15 million. Local politics and restrictive zoning laws are exacerbating this crisis, as affluent homeowners resist affordable housing projects. The discussion highlights how regulatory challenges and neighborhood opposition drive up construction costs. The podcast advocates for essential state-level reforms as a vital solution to keep the American Dream of homeownership alive for future generations.
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Housing Shortage Is Systemic
- The U.S. is millions of homes short and could be 15 million short within a decade if building stays slow.
- The supply gap began after the Great Recession when construction stalled while household formation and immigration kept rising.
Regulation Drives Up Costs
- Regulatory rules like zoning, permit fees, and design mandates are major barriers to building affordable homes.
- These rules increase costs and timelines, choking off supply despite builders knowing how to construct housing.
Local Politics Inflate Home Prices
- Local homeowners use political influence to block smaller, affordable projects while supporting luxury builds that protect their equity.
- Large lot-size and setback rules force higher per-unit infrastructure costs, raising finished home prices dramatically.