Browse
Log in / Register
Share
The United States faces a deficit of nearly 4 million housing units, a gap that will take over seven years to close at the current pace of construction. This shortage, highlighted in a recent economic report, is a primary driver of high home prices and unaffordable rents. A series of expert panels at the 2024 South by Southwest (SXSW) festival, titled "Let America Build," focused on actionable solutions to boost housing supply. The consensus is clear: solving the crisis requires a multi-faceted approach, including zoning reform, construction technology innovation, and creative financing options like assumable mortgages.
The core issue is a chronic imbalance between housing supply and demand. As noted by experts, the problem is exacerbated by systemic barriers to construction. Mary K. Cunningham of the Urban Institute stated, "We make it too hard to build. Across the country... it takes too long, it costs too much." This sentiment was echoed by other panelists who pointed to complex local regulations. Sara Bronin, founder of the Zoning Atlas, provided a striking example: "The average [zoning] code in the country is 139 pages. In the Denver and Phoenix metros, the average number of pages is over 250. Boston's code is over 3,500 pages." This regulatory complexity directly impacts the speed and cost of new development.
Simplifying zoning codes is widely seen as a critical step. Austin City Councilmember Natasha Harper-Madison advocated for experimentation, suggesting the creation of designated zones with flexible rules—what she termed "rogue zoning"—where a mix of housing types, from manufactured homes to multifamily units, could be permitted. The goal is to increase density and variety. Furthermore, a push for more uniform building codes at a state or national level could reduce costs. John Ho, CEO of Landsea Homes, explained that varying local codes force builders to create "custom homes" for each jurisdiction, significantly increasing expenses. Streamlining these processes is essential for delivering more attainable housing.
Innovative building techniques are emerging to accelerate construction and lower costs. Jared Kuhn of ICON, a company that uses 3D printing technology, reported, "We can print a 2,000-square-foot home in about seven days. And then it takes some other 60 to 90 days to do the rest of the home. So we're delivering homes in four to five months right now." This is notably faster than traditional methods. Panelists also highlighted the potential of manufactured housing and prefabricated components, which have advanced significantly in quality and can be produced more efficiently at scale.
Creative financing solutions could help unlock existing inventory. Kendall E. Bonner of eXp Realty pointed to assumable mortgages—where a homebuyer can take over the seller's existing mortgage—as an "underutilized opportunity." This can be particularly advantageous when the existing loan has a lower interest rate than current market rates. The concept of mortgage portability, though not yet widespread, was also discussed as a potential future tool to encourage mobility among homeowners. The following data illustrates the acute affordability challenge in a high-growth state like Texas:
| Affordability Metric | Texas Data |
|---|---|
| State Population Share of U.S. | 9% |
| Share of U.S. New Housing Permits (2024) | 15% |
| Texans Earning < $75,000/Year | 51% |
| For-Sale Inventory Affordable to That Income Level | 16% |
Source: Analysis of 2024 data.
A comprehensive, multi-pronged strategy is necessary. This includes reducing regulatory barriers, embracing technological innovation, and exploring new financial models. As Austin Mayor Kirk Watson emphasized, the need for housing supply is fundamental to a city's growth and equity. "We want generational fairness... We want everyone and anyone to be able to stay here." While municipal policy changes can be slow, a sense of urgency is required. Addressing the housing shortage demands coordinated action from policymakers, builders, and communities to increase supply and improve affordability.
