The housing supply gap in the United States will expand to 4.03 million units in 2025

LootboxPhobia · 2026-03-03T16:05:03+00:00

According to Realtor.com report, the housing supply gap in the United States is expected to widen to 4.03 million units by 2025, due to a significant increase in household formation and a decline in housing construction activity. This shortage has exacerbated housing price inflation, especially impacting homeownership among young people.

LootboxPhobia

2026-03-03 16:05:03

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Investing.com - According to the “2026 Housing Supply Gap Report” released by Realtor.com on Tuesday, the U.S. housing supply gap has widened from 3.8 million units in 2024 to approximately 4.03 million units in 2025.

The widening gap is due to a significant increase in household formations last year. About 1.41 million households are expected to form in 2025, compared to approximately 999,000 in 2024.

Meanwhile, housing construction activity has declined. According to government data released last month, an estimated 1.359 million housing units will be started in 2025, down 0.6% from 2024. Approximately 1.498 million housing units are expected to be completed in 2025, a 7.9% decrease from 2024.

Realtor.com states that the housing shortage has worsened over the past decade due to underbuilding, which limits supply, drives up home prices, and makes homeownership more out of reach, especially for young people.

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