Why The U.S. Can’t Build Homes Fast Enough

Large homebuilders have used mergers and acquisitions to grow their positions in several key housing markets since the 2008 subprime mortgage crisis. The industry's consolidation coincides with a slowdown in construction productivity and contributes to escalating prices for buyers and renters, experts say. As an economic tightening cycle initiated by the Federal Reserve freezes real estate development, politicians are promoting policy tools that could alter how homes are built in the U.S.

Chapters:
00:00-01:06 Cold Open
01:06-03:40 Chapter 1 - Home supply
03:40-08:16 Chapter 2 - Mergers & acquisitions
08:16-11:11 Chapter 3 Regulation

Produced and Edited by: Carlos Waters
Supervising Producer: Lindsey Jacobson
Animation: Jason Reginato
Additional Footage: Federal Reserve, Getty Images
Additional Sources: Associated Press, American Enterprise Institute, Census Bureau, Competitive Enterprise Institute, D.R. Horton, Federal Reserve, Hogan Lovells, John Hopkins University, Lennar, National Association of Home Builders, U.S. Securities and Exchange Commission, White House, Zillow, Zumper

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Why The U.S. Can’t Build Homes Fast Enough

[JacobPaula]

Our economy is struggling with uncertainties, housing issues, foreclosures, global fluctuations, and the pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

[CharlotteJacobsons]

Finally saved up $217k in my emergency fund, ready to dive into investing, but now I'm realizing the housing market is a wild mess. Can’t build homes fast enough? More like, can’t figure out where to even start investing! Guess I'll just wait another decade for things to calm down… 🤷‍♂ #InvestingStruggles

[anbuhxrris]

It’s the same problem with car manufacturers. Build less homes, you can charge more. Build less cars, you can charge more.

[duerf]

There is one giant elephant in the room that no one is talking about: existing home owners. People in my city actually petitioned their city council to reduce number of new constructions because they were afraid that it would make the value of their own property to go down. Too many people still see houses as investment that they happen to dwell instead an utility.

[jowens]

Stop letting corporations buy residential property

[kittimcconnell]

There are homes standing empty all over the USA. Why is that?

[matt]

25k housing credit will only make housing prices go up by 25k

[DS-gtft]

NO, Californians are NOT leaving for better weather. Come on.

[SwornInvictus]

Developer here. Firstly it's the land prices due to megacorps buying up raw land and residential property, that shouldn't be allowed if you ask me. Second, there are a number of innovative building methods such as CEB which improve quality, longevity, and cut costs, but the regulatory environment makes it challenging to try new building concepts. In some places you need a permit to so much as build a shed, which is discouraging. You also have rediculous zoning laws which are not only a nightmare to navigate but dissuade villages from forming (ludicrous building spacing requirements, or recreational only zoning that nobody can live on full time). I'd also like to point out that the way we build today, stick frame with modern concrete, is dooming structures to last only 100 years at best, whereas we could realistically build homes at a similar price to last more than several hundred (just look at Europe). It's mostly regulation and I'm sure "squatters rights" is dissuading a lot of potential capital flow because landlords understandably don't want to fuss with that.

[jorf]

What I got from this video is America is turning every essential need to a business and is being greedy. The average working person cannot afford to buy or own a home.

[Erik_The_Viking]

Two words: zoning laws. Those need to change, and while we're at it, get rid of corporations and "foreign investment" in residential property. We've also effectively made it illegal to build lower income and higher density housing.

[randykrus]

Stop corporations from being able to buy homes.

[captainhappy]

There is absolutely no shortage of expensive houses. The shortage concerns only affordable houses.

[mattr]

Builder here and I can tell you two things that would change everything. Make permits easy to get. Make property easy to split. This would create a home building explosion in popular areas.

[beverly]

There is not a housing shortage. We can’t afford the ones available. 😂

[Dangic]

It’s not competition if the top 10 builders all build the same low quality basic house.

[ibizawavey]

Private equity doesn't want homes built for middle class when they are in the game themselves with massive portfolios. What is so confusing about this?

[jamieholsey]

The problem is not availability but affordability. I live in Seattle metro area and we have tons of homes for sell but they are so expensive no one can afford them . A basic house going for 1 million is insane. It vary by region

[___beyondhorizon]

As a childless, pet- less person, i know i can't afford to buy a home. There's no certainty in life, I'll move wherever the job is.
In March, i learned that there's a local church, donated it's land, and build affordable housing in short period of time. 2 of the residents i talked to, said she was homeless for over 5 years. One day, she was told that she was selected to be the new affordable unit. It comes fully furnished, kitchen appliances, bedding and a common laundry room. It a 500 units, 2 story building with elevator. The entire building is for seniors housing only. With her SS monthly income, she can finally pay her $500 rent . Both of them volunteer at the church, they make sure the grounds are well kept.
This happened in the border town near California and Mexico, this spring, 2024. The mayor was there for the opening ceremony with 1 local news reporter. Such story are seldom reported on national news.

[carstruckmidnght]

Stop building million dollar McMansions. Stop building communities that come with an additional HOA cost. Build 200-300k$ homes. Remember back in the day when builders built affordable, modest size cape neighborhoods. Bring that back.