America’s housing shortage is more “catastrophic” than expected, according to a new report from the National Association of Realtors (NAR). the report, written by the Rosen Consulting Group, highlights the huge underbuilding deficit in the United States and the consequences of underinvestment in housing.
The report says the acute shortage of affordable and available housing is hurting public health and the economy. With the report’s findings, NAR calls for a âonce-in-a-generationâ policy change and urges lawmakers to include housing investments in any infrastructure package. In addition, the organization says policymakers should also “expand access to resources, remove barriers and encourage new development and make housing construction an integral part of a national infrastructure strategy.”
Over the past 20 years, US housing stock growth has slowed dramatically across the country, especially over the past decade. The NAR report calls this an “underbuilding gap” of 5.5-6.8 million housing units since 2001.
The situation is even more serious in the Chicago-Naperville-Elgin area, where the under-construction gap of 55,450 units is one of the highest in the country among major metropolitan areas.
“There is a strong desire for homeownership across this country, but the lack of supply is preventing too many Americans from achieving that dream,” Lawrence Yun, chief economist of NAR, said in a statement. press on the report. âIt is clear from the findings of this report and the conditions we have seen in the market over the past few years that we will need to do something dramatic to close this gap. “
NAR Chairman Charlie Oppler noted in the press release that building adequate housing over the next decade would add an estimated 2.8 million jobs to the US workforce and $ 50 billion new tax revenues at the national level.
NAR hopes the report will pressure the federal government to provide additional public funding and policy incentives to the housing industry, which would benefit the country’s economy and help close the housing deficit for people. low-income households, households of color and millennials.