Housing Supply Gap Exceeds 4 Million Homes in 2025 (opens in new tab)

In 2025, new home construction fell short of household formations, widening the U.S. housing supply gap to an estimated 4.03 million homes. Home completions, a measure of newly delivered housing supply, declined from the prior year’s near-record pace, driven largely by a slowdown in multifamily completions. An estimated 1.8 million potential Gen Z and millennial households were missing in 2025, reflecting affordability constraints and other structural barriers.