R48892 — Housing Supply: Current Trends and Policy Considerations

Housing affordability concerns have led to a focus on insufficient housing supply as a possible cause. There are many metrics by which economists analyze housing supply. Currently, national-level statistics paint a mixed picture of housing supply conditions. For example The total number of homes per person and the total number of homes per household have been fairly steady since 1980, indicating similar supply conditions over this period. Vacancy rates are currently lower than the 1980-2024 average, indicating that supply is currently more constrained than previously. The housing stock is getting relatively older, as evidenced by lowered population-adjusted construction rates over the 1980-2024 period, suggesting a slowdown in building that could be contributing to relatively tighter supply. The current months’ supply of homes for sale suggests differing supply conditions for new and existing single-family homes, although the net effect (given existing homes far outnumber new homes) may nonetheless suggest an undersupply of homes for sale. Prices and rents outpaced incomes and inflation between 1988 and 2024, potentially suggesting constrained supply relative to demand, but those increases slowed or reversed in 2025, which could suggest easing supply (or lowered demand), although it is too soon to tell if these trends will be sustained. Supply conditions also vary significantly from location to location, across types and sizes of homes, and for households of differing income levels. Many estimates suggest some level of “housing shortage” at the national level, but these shortages may be more (or less) acute for some areas. In particular, by most measures, low-income renters face worse supply conditions than national data would suggest for other income levels. There are many potential explanations for variations in housing supply conditions. Identifying the main causes of lagging housing supply can be important not only in understanding the issue but also in considering potential policy options to increase supply without increasing price. In recent decades, increasing regulatory costs, restrictive zoning and land use, and changing demographics have contributed to supply issues. More recent changes to tariffs and immigration may also be contributing to higher labor and material costs and shortages of these inputs. On a longer-term horizon, climate change may be a risk to local housing supply (but potentially national housing supply as well, depending on the level of distortion introduced to the market) should natural disasters increase in frequency or intensity. Given the specific challenges facing housing supply, policy considerations may differ notably at the local level and national level. Policymakers may be equally interested in local and national supply issues and policies. Further, many of the supply constraints discussed in this report are affected by regulations at the local level. Although the federal government has limited authority or policy tools to directly affect supply in local housing markets, Congress can attempt to increase housing supply by implementing policies that may help lower new and refurbished building input costs or by providing incentives to local jurisdictions to pursue pro-supply policies.

Curated by CRS — every bill listed in this report's relatedMaterials. Edge type cited_in_report, gold confidence.

• HR 6737 — SPUR Housing Act · 119th Cong
• HR 6644 — 21st Century ROAD to Housing Act · 119th Cong
• HR 3475 — Bipartisan American Homeownership Opportunity Act of 2025 · 119th Cong
• S 189 — CONSTRUCTS Act of 2025 · 119th Cong
• S 657 — Neighborhood Homes Investment Act · 118th Cong