The housing shortage in the US has reached record levels
The housing shortage in the United States is projected to reach 4.03 million homes by 2025, driven by a growing number of households and a slowdown in new construction. This situation is causing home prices to rise and making housing less affordable, especially for young buyers.
Aedis
The housing shortage in the United States is projected to reach 4.03 million homes in 2025, up from 3.80 million in 2024, according to data from the 2026 housing market report.
This increase is largely due to a significant rise in the number of households over the past year. In 2025, around 1.41 million new households were formed, compared to approximately 999,000 in 2024.
At the same time, the pace of home construction has slowed. In 2025, construction began on 1.359 million housing units, a 0.6% decrease from the previous year. A total of 1.498 million homes were completed, which is 7.9% lower than in 2024.
A prolonged period of insufficient construction, lasting more than a decade, has led to limited housing supply, rising prices, and reduced affordability—especially for younger buyers.