{"id":2117105,"date":"2023-12-06T06:21:09","date_gmt":"2023-12-06T11:21:09","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/home-economics-is-the-us-missing-2-million-houses-or-20-million\/"},"modified":"2023-12-06T06:30:31","modified_gmt":"2023-12-06T11:30:31","slug":"home-economics-is-the-us-missing-2-million-houses-or-20-million","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/home-economics-is-the-us-missing-2-million-houses-or-20-million\/","title":{"rendered":"US housing shortage: Are 2 million homes missing, or 20 million?"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhome-economics-is-the-us-missing-2-million-houses-or-20-million%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2117105&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Mortgage Rates and\u2063 Housing Prices Reach Record Highs: The Supply \u200dSide Problem<\/h2>\n<p>Mortgage rates are skyrocketing, making it nearly impossible for hardworking Americans to enter the housing market. Meanwhile, retirees are struggling to downsize due to the exorbitant prices. Unfortunately, the Biden administration has done little to address this crisis. In this captivating installment of the Home \u2064Economics series by the Washington Examiner, we \u200ddelve into the\u200c root causes of the housing market dilemma, the toll it&#8217;s taking on people across the country, and the innovative solutions individuals are adopting to survive in this challenging market. \u2063Part three \u2063of this four-part series focuses on the supply side issues \u2063plaguing the housing\u200c market.<\/p>\n<h3>The Housing Crisis: Decades of Undersupply<\/h3>\n<p>While various theories have been proposed\u200c to explain the unaffordability of housing, economists agree that chronic undersupply is the underlying problem. Other factors, \u200dsuch as private\u200c equity firms and immigration, may cause temporary slowdowns, but the scarcity of housing is like an engaged parking brake, hindering progress at every turn.<\/p>\n<h3>The Problem at Hand<\/h3>\n<p>The situation\u2063 reached a breaking point when \u2062mortgage rates soared while housing prices remained at\u200c record highs. Consequently, the cost of \u200cpurchasing a new home skyrocketed, leading to a significant decline in home sales. Many families are now unable to afford homeownership.<\/p>\n<h3>Why Prices Are Soaring<\/h3>\n<p>Housing prices have reached\u2063 unprecedented levels, surpassing even the heights of the housing bubble before\u200d the 2008 financial crisis. The fundamental issue is a severe lack of supply. Altos Research President Mike Simonsen emphasizes that the country needs approximately 1.5 million new homes annually to keep up\u200b with population growth \u200dand replace old stock. However, over the past decade, the construction rate has fallen short, with \u2064less than a million new homes built each year.<\/p>\n<p>Rents have also been rising faster than overall inflation for decades, indicating that the demand for housing is outpacing supply. This trend highlights\u2062 the urgent need for more affordable housing options.<\/p>\n<h3>The Supply Side Perspective<\/h3>\n<p>The notion \u200dthat \u200c<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/steve-forbes-reveals-the-key-tool-officials-are-not-wielding-against-inflation\/\" title=\"Steve Forbes Reveals The Key Tool Officials Are Not Wielding Against Inflation\">supply-side problems<\/a> are the primary cause of the housing market crisis has gained\u2063 traction at the highest levels of government.\u200d The Obama, Trump, and Biden administrations have all acknowledged that local barriers to homebuilding, such as zoning laws \u2064and\u2064 land-use regulations, have severely limited housing construction. Homeowners&#8217; use of these rules to impede new development is commonly referred to \u200das &#8220;NIMBYism&#8221; (not in my backyard).<\/p>\n<p>Efforts have been made to address this issue, including the Obama Council of Economic Advisers&#8217; publication of \u2063a &#8220;toolkit&#8221; in 2016 to reduce barriers caused by local land-use rules. \u200cHousing and Urban Development\u2064 Secretary Ben Carson declared himself a &#8220;YIMBY&#8221; (yes in my backyard) during the Trump administration, and President Donald Trump signed an executive order in 2019 aimed at <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/desantis-outlines-energy-plan-to-reverse-biden-rules-and-ramp-up-us-fossil-fuels\/\" title=\"DeSantis unveils energy strategy to counter Biden policies and boost American fossil fuels.\">reducing regulatory barriers<\/a> to new\u200c housing. The Biden White House \u2063has also recognized the lack of supply as a key factor in poor affordability and has sought to incentivize localities to ease building restrictions.<\/p>\n<h3>The Case of San Francisco<\/h3>\n<p>Major U.S. cities, particularly \u2062those along the coasts\u200b like San Francisco, Los Angeles, Boston, and\u2063 New York, have implemented \u2064severe building restrictions, resulting in exorbitant housing prices. For instance, the\u200c median home \u2063sale\u2064 price in San Francisco is a staggering $1,334,000. \u2062This \u2064astronomical figure puts homeownership \u200dout of reach for most households, as mortgage payments\u2063 would consume around 85% of the median income \u2064in the area.<\/p>\n<p>San Francisco&#8217;s restrictive zoning laws and neighborhood building restrictions,\u2062 coupled with a lengthy public process that allows for local residents&#8217; input, have\u2064 hindered new housing\u200d supply. The city&#8217;s inability to build up or out has\u2064 exacerbated the problem. Surrounding areas, \u2064such as Mountain View, have even stricter land-use policies,\u200d further limiting housing options.<\/p>\n<h3>The Magnitude\u200c of the Shortage<\/h3>\n<p>Estimates of the nationwide housing shortage\u2063 vary widely. Moody&#8217;s Analytics suggests a shortfall of 1.8 million housing units, while Freddie\u200c Mac puts the figure at 3.8 million units. However, a report by the Joint Economic Committee&#8217;s Republican staff suggests that the shortage could be as high as \u206420 million units.<\/p>\n<p>The discrepancy in estimates stems from different definitions of the shortage. Moody&#8217;s figure focuses on bringing vacancies back to 1990s \u200dlevels and satisfying pent-up household formation. \u2063In contrast, the 20 \u200cmillion-unit estimate considers the elimination of supply-side constraints\u200c imposed by government\u2062 policies, aiming to \u200calign housing prices with construction costs.<\/p>\n<p>Ultimately, the scale of \u200dthe problem necessitates significant regulatory changes, such as local zoning reform, to address the shortage effectively. However, implementing such changes would require a cultural shift and a reevaluation of housing as an investment.<\/p>\n<p>Understanding the true extent \u2062of the housing\u2062 crisis is crucial for devising comprehensive solutions. Whether the\u200b goal is to alleviate immediate\u200b affordability issues or create \u200ca housing \u200dmarket that is abundant and affordable\u2062 for all, bold actions are needed to overcome the supply side\u2062 problems that have plagued the housing market for decades.<\/p>\n<p> <\/p>\n<h2> \u200d How do accessory dwelling \u2062units (ADUs) and \u2063modular construction offer innovative solutions\u2062 to the housing crisis in San Francisco and other\u2062 cities<\/h2>\n<p><span>  \u2063 Price in San\u2064 Francisco is over $1.4 million, making it unaffordable for the majority\u2064 of\u200c residents. The city&#8217;s strict zoning laws \u2063and limited \u2062land availability\u2062 have contributed to the supply shortage\u2062 and \u200bsubsequent increase in prices.<\/p>\n<p>Despite the recognition of the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/its-ravaging-our-people-john-kennedy-holds-nothing-back-with-powell-yellen-over-skyrocketing-inflation\/\" title=\"\u2018It\u2019s Ravaging Our People\u2019: John Kennedy Holds Nothing Back With Powell, Yellen Over Skyrocketing Inflation\">supply side problem<\/a>, progress in addressing it has been \u2062slow. Local governments\u200c and communities often resist new\u2062 developments due to\u200d concerns about increased congestion, strain on infrastructure, and changes to the character of neighborhoods. This NIMBYism\u200d perpetuates the housing crisis by further limiting the housing supply.<\/p>\n<h3>Innovative Solutions<\/h3>\n<p>While the government plays a crucial \u200brole in addressing the housing crisis, individuals and organizations have also taken \u2064it upon themselves\u200c to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/san-juan-capistrano-water-rates-will-rise-up-to-30-per-month-in-september\/\" title=\"San Juan Capistrano water rates to increase by \/month in September.\">find innovative solutions<\/a>. One\u2064 such solution is the rise of accessory dwelling units (ADUs), also \u200cknown as granny flats or backyard cottages. These small standalone units can\u200d be\u200b built in the backyards of existing homes, providing additional housing options without drastically changing the neighborhood&#8217;s character. \u200cADUs have gained popularity in cities like Seattle and Los Angeles, where homeowners\u200b are turning their \u200dunused spaces into rental\u200d units to \u2063meet the growing demand for affordable housing.<\/p>\n<p>Another promising solution is the use\u200b of modular construction. This method involves building homes in a\u2063 factory\u200c setting and then transporting them to\u200d the desired location. Modular construction offers several benefits, including \u2064shorter construction times, reduced labor costs, and increased \u2064energy efficiency. By embracing this method, builders can increase the pace of construction and\u200d help meet the demand for affordable housing.<\/p>\n<h3>The \u2062Road Ahead<\/h3>\n<p>The \u2063housing market crisis, characterized by high mortgage rates\u2062 and soaring housing prices, presents a dire situation for many Americans. The chronic undersupply of housing, exacerbated by local\u200d building restrictions and NIMBYism, lies at the core of the issue. While efforts have been made \u200bby\u200c successive administrations to address the problem,\u2064 progress remains\u200b slow, and\u200d the crisis persists.<\/p>\n<p>However, there are\u2064 signs of hope. The recognition of the supply-side problem and the adoption of innovative solutions like ADUs and modular construction are \u200csteps in the right direction. It is\u2064 crucial \u2062for government, communities, and individuals to work together to \u2064overcome the barriers that hinder housing construction and \u200bstrive for a more affordable and accessible housing market for all Americans. Only then can the \u200cdream of homeownership and housing security become \u2062a reality for hardworking individuals and \u200cfamilies across the country.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mortgage rates soar to a 22-year peak while house prices hit record highs, making it tough for hardworking Americans to buy homes and retirees to downsize. The Biden administration&#8217;s efforts to address the issue have been minimal. In the Home Economics series by the Washington Examiner, we delve into this problem and explore potential solutions<\/p>\n","protected":false},"author":1,"featured_media":2117106,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2117105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2117105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2117105"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2117105\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2117106"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2117105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2117105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2117105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}