The United States is experiencing a housing shortage. At least, that is the case according to common belief and is even the basis for National Policy, as the Biden Administration has stated plans to address the housing supply shortfall. But, new research from the University of Kansas finds that most of the nation’s markets have ample housing in total, but nearly all lack enough units affordable to very low-income households. The researchers found only four of the nation’s 381 metropolitan areas experienced a housing shortage in the study time frame, as did only 19 of the country’s 526 “micropolitan” areas — those with 10,000-50,000 residents. The findings suggest that addressing housing prices and low incomes are more urgently needed to address housing affordability issues than simply building more homes.
Professor of Public Affairs & Administration Emeritus at KU, Kirk McClure says helping people afford the housing stock that is available would be more cost effective than expanding new home construction in the hope that additional supply would bring prices down, adding, we cannot build our way to housing affordability. We need to address price levels and income levels to help low-income households afford the housing that already exists, rather than increasing the supply in the hope that prices will subside
