News Corp-owned Realtor.com reported that the U.S. housing supply gap widened to about 4.03 million homes in 2025, up from 3.8 million in 2024, as construction continued to lag household formation and pent-up demand persisted. The report estimates 1.82 million “missing” Millennial and Gen Z households in 2025, reflecting affordability pressures, even as mortgage-rate improvements lowered the recommended income to buy a median-priced starter home to roughly $86,000. Realtor.com said structural barriers such as zoning, permitting, labor shortages and material costs are limiting progress, and that even with a 50% increase in construction it could take around seven years to close the deficit.
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