Housing Crisis Worsens as Federal and Local Governments Block New Construction

America is short 2-5 million homes after decades of not building enough housing to meet demand. The shortage stems from two main problems: federal lawmakers can't agree on housing policy, and local governments use zoning laws that block new construction.

Many cities and towns have zoning rules that ban apartment buildings in most areas or require houses to sit on large lots. These laws make it challenging or nearly impossible to build the types of homes people actually need and can afford.

The crisis affects renters and buyers at every income level. Housing policies often overestimate what people can afford, focus on building the wrong types of homes, and exclude many borrowers from getting loans.

Political leaders across the country are starting to recognize the problem. States and cities are beginning to tackle overly restrictive zoning laws, but progress remains slow while people continue scrambling to find housing they can afford.