U.S. Faces 3.8 Million-Home Shortage Amid Housing Crisis

The United States is grappling with a significant housing shortage, with a current shortfall of approximately 3.8 million homes, the third-largest gap since 2012. Recent discussions at the South by Southwest (SXSW) festival highlighted the urgency of addressing this crisis, emphasizing the need for policy changes to boost home construction and alleviate supply constraints. Experts noted that while home completions reached a nearly two-decade high of 1.6 million in 2024, the pace of construction is insufficient to meet demand, predicting it would take over 7.5 years to close the gap at the current rate. The South is expected to recover the fastest, potentially within three years, while the Midwest could take an alarming 41 years. The shortage particularly impacts younger generations, with many opting to live with parents or roommates due to high housing costs. Overall, experts agree that sustained efforts and effective policies are crucial to tackle this persistent issue.