AUSTIN – (Realty News Report) – Austin-based Realtor.com is launching Let America Build, a national campaign advocating for solutions to increase expand the housing supply with more robust home construction.
More than a decade of underbuilding has left the U.S. with a shortage of nearly 4 million homes, according to a new analysis from Realtor.com. With home prices and rents stretching household budgets to their limits, this persistent supply gap is pushing homeownership increasingly out of reach for millions of Americans.
“America’s housing shortage is holding back economic growth, driving up costs, and making it harder for millions of families to find a home,” said Damian Eales, CEO of Realtor.com. “Through Let America Build, we’re rallying the right voices to push for real solutions that will unlock supply and make homeownership more attainable. That’s a win for families, communities, and the entire economy—because when housing works, everything works.”
While recent construction gains show progress, they highlight the urgent need for bold policy action, Realtor.com said.
In 2024, the nation’s home completions grew to 1.6 million, the highest level in nearly two decades, driven by an increase in both single- and multi-family construction. For the first time since 2016, new construction activity outpaced household formations, Realtor.com reported.
Yet, the nation still faces a supply shortfall of 3.8 million homes—the third-largest annual gap since 2012, trailing only 2020 and 2023.
Despite more homes being started last year, rising housing costs compounding on top of a lack of availability has kept many young adults from forming new households. Instead, many Millennials and Gen Zers opted to live with family or roommates, leading to an estimated 1.63 million “pent-up” households that didn’t materialize in 2024. These households are an important part of understanding the challenge, and contribute to the almost 4 million total housing supply gap, highlighting the unmet demand for homes.
“While builders made strides last year, the scale of the historic housing shortage, paired with strong pent-up demand, meant that new supply couldn’t fully close the nearly 4 million-home gap,” said Danielle Hale, chief economist, Realtor.com. “Young households are particularly feeling the strain, as buying a home on an early- to mid-career salary is increasingly out of reach for many. Though a rise in both multi- and single-family construction offered some relief amid low existing inventory, addressing the gap will take sustained effort and smart policy.”
Realtor.com;s national Let America Build campaign is advocating for solutions that cut through red tape, restrictive zoning, and outdated regulations that are constricting the ability to build the homes America needs. The initiative calls on lawmakers at every level to make bold, pro-building choices. Realtor.com aims to join forces with some of the biggest industry leaders, including builders, policymakers and housing advocates to push for actionable change that will help create more homes—faster.
SXSW Panel in Austin Addresses Affordability
Hale of Realtor.com was among the housing experts addressing affordability in a panel discussion at the South by Southwest festival in Austin on Monday.
Austin Mayor Kirk Watson told the audience that the city is addressing housing affordability with solutions that including a reduction in minimum lot size, which trims land cost and the introduction of accessory dwelling units like backyard casitas.
Many people have relocated from California to Austin in recent year as companies such as Tesla – and Realtor.com itself – have moved their headquarters to Texas.
“People move here and say it’s affordable by California standards,” the Austin mayor said.
He added that transportation costs are part of affordability and the city is placing emphasis on transit-oriented development adjacent to public transportation.
“Austin is a special place,” Watson said. “Austin has a good vibe to it.”
Tariffs Impacting Cost of Home Construction
On the national level, questions about housing affordability have intensified as home builders calculate the impact of tariffs on construction. Some 7.3% of the ingredients in a new homes are imported building materials that will be subject to new tariffs, according to the National Association of Home Builders.
Addressing a tariff question, Realtor.com Chief Economist Hale said: “One of the question marks on how fast we’ll see the supply gap close is whether or not builders will be able to continue to build at their recent pace, which surpasses what we saw before the pandemic. We’ve recently seen the housing market index slip. This measure of builder confidence is correlated with new construction and suggests that there could be weakening in housing starts as builders express concern for rising costs in the face of tariffs that would impact key inputs such as lumber and drywall in addition to other building materials.”
Last month when tariffs seemed to jet toward the top of the Trump administration’s priority list, a lot of home builders started penciling-in an additional $7,500 to $10,000 per house to cover tariff-related building materials increases, the NAHB reported.
March 11, 2025 Realty News Report Copyright 2025
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File: Let America Build: More Home Construction Needed