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The U.S. construction industry missed its mark again as the country’s housing-supply gap grew to an estimated 4.03 million homes in 2025 from 3.8 million in 2024.
Realtor.com’s 2026 Housing Supply Gap Report, issued on March 3, indicates that construction once again fell short in meeting housing demands, particularly from younger households. The data shows nearly 1.41 million new households were formed last year, compared with just 1.36 million housing starts.
“Even when annual construction and household formation are roughly balanced, the market is still digging out from more than a decade of underbuilding,” Realtor.com chief economist Danielle Hale said in the report.
“A supply gap exceeding 4 million homes underscores how deeply rooted the shortage has become. Without a sustained and targeted increase in housing supply, particularly in areas with strong job growth and persistent demand, affordability challenges will continue to sideline many would-be buyers.”…
Realtor.com’s 2026 Housing Supply Gap Report, issued on March 3, indicates that construction once again fell short in meeting housing demands, particularly from younger households. The data shows nearly 1.41 million new households were formed last year, compared with just 1.36 million housing starts.
“Even when annual construction and household formation are roughly balanced, the market is still digging out from more than a decade of underbuilding,” Realtor.com chief economist Danielle Hale said in the report.
“A supply gap exceeding 4 million homes underscores how deeply rooted the shortage has become. Without a sustained and targeted increase in housing supply, particularly in areas with strong job growth and persistent demand, affordability challenges will continue to sideline many would-be buyers.”…
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