Today’s real estate market is a challenging one for buyers. While home prices have relaxed since their peak in the COVID-19 pandemic, the typical cost of a home in the U.S. has risen by more than 23% from early 2020 through the end of 2025. Compounding the housing affordability problem further, mortgage rates remain at elevated levels not seen since before the Great Recession. Additionally, the impacts of high rent and inflation have made it harder for many would-be buyers to save up for home purchases.

Underlying all of these conditions is the simple fact that America has been slow to add new homes to its housing supply. Estimates of the national housing shortfall range between 1.5 and 7.3 million housing units relative to the needs of the current population. One of the primary reasons is that many construction firms downsized or went out of business entirely during the Great Recession, leading to a long stretch of underbuilding.

Originally published on constructioncoverage.com, part of the BLOX Digital Content Exchange.

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