Following the 2008 subprime mortgage foreclosure crisis and subsequent Great Recession, housing supply declined precipitously.1 As a result of that recession, fewer new homes were built between 2008 and 2018 than in any decade since the 1960s.2 The mismatch between housing construction and demand continues to widen3 which creates significant affordability challenges for buyers and renters.4
Moreover, pandemic-related setbacks to the housing sector, including disruptions to supply chains and a construction labor shortage,5 have exacerbated already challenging market forces. Local leaders across the country are increasingly under pressure to make up for the gap between housing supply and demand.
This housing supply crisis threatens the economy, limits access to opportunity, reinforces long-standing inequities, and undermines efforts to create positive outcomes for residents and communities.
To learn more about the challenges that cities and towns face regarding their local housing supply needs, the National League of Cities conducted a nationwide survey of local leaders6 between January 18 and March 1, 2023, to better understand their most pressing concerns and perspectives on possible solutions. With this understanding, partners across all sectors— public and private—can better work together to address the critical housing needs across America’s cities, towns and villages.
Endnotes
1 Hayward, J. (October 2022). U.S. Housing Shortage: Everything, Everywhere, All at Once. Fannie Mae
2 Maye, A.A. & Moore, K.K. (July 2022). The growing housing supply shortage has created a housing affordability crisis. Economic Policy Institute. https://www.epi.org/blog/the-growing-housing-supply
3 Cunningham, M. (March 2023). Housing Gap Widens as More Families Confront Fewer Homes. Investopedia.
4 Khan, A., Weller, C.E., Roberts, L. & Zonta, M. (August 2022). The Rental Housing Crisis Is a Supply Problem That Needs Supply Solutions. Center for American Progress. https://www.americanprogress.org/article/th
5 Tita, B. (April 2023). Construction Industry Has Work, Needs More Workers. The Wall Street Journal.