Housing costs consume a growing share of income in much of the country. Analysts disagree about whether the binding constraint is supply, financialization, wages, or local control, and the answer determines which policies would help.
Housing production fell sharply after 2008 and has not returned to prior rates relative to household formation in many metropolitan areas. Cumulative shortfalls are estimated in the millions of units, with wide variation by region.
Local zoning determines what may be built where. Restrictions on density, minimum lot sizes, parking requirements, and lengthy discretionary review all affect how much housing is feasible and how fast it can be delivered.
Homeowners hold most household wealth in home equity, which creates a direct interest in rising prices. This is the core political tension: policies that improve affordability for buyers and renters reduce appreciation for existing owners.