The McKinsey Podcast Confronting the affordable-housing crisis
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Jun 24, 2025 JP Julien, a Partner at McKinsey and head of the McKinsey Institute for Economic Mobility, tackles the pressing affordable housing crisis in the U.S. He highlights the critical link between safe housing and economic mobility, revealing insights on how this issue disproportionately affects Black Americans. Julien discusses innovative solutions like off-site construction and the importance of public-private partnerships to unlock investment. He encourages regulatory reforms and community engagement to create meaningful change, emphasizing that even small actions can make a big difference.
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Massive US Housing Shortfall
- There is a massive shortfall of housing in the US, with 8.2 million fewer units than needed in 2023.
- This shortage causes 40 million households to spend over 30% of income on housing, making homeownership out of reach.
Location Shapes Economic Mobility
- Location greatly influences economic mobility due to access to jobs, schools, and safety.
- Housing shortages and poor planning create barriers that limit upward mobility linked to one's address.
Disproportionate Impact on Black Americans
- Black Americans are disproportionately affected by housing shortages.
- They often live where housing gaps are widest and face the greatest income challenges.