This is not simply a post-COVID spike. It is the result of a decades- long housing shortfall, with experts estimating a national deficit of 2 to 5 million homes.
senior officials admitted that federal policy “asks far too little of cities and states” that refuse to reform their own housing barriers. Jared Bernstein, former chair
of the Council of Economic Advis- ers under Joe Biden, lamented the stalemate, telling the Times: “Fed- eral housing policy is stuck in a really weak equilibrium.” That’s something Republicans
have argued for years, often citing that Washington’s heavy-handed approach and local Democrat resis- tance combine to suppress supply while driving renters and first-time buyers into financial distress. Two left-leaning organizations,
the Center for American Progress and the Searchlight Institute, have recently proposed federal incentives
OLD STYLE Most housing in the U.S. is still built by hand, on-site, with little innovation. That’s a stark contrast to countries such as Sweden, where more than 40% of new homes are factory-built modular units.
that essentially bribe cities into allow- ing home construction. “Rent Relief for Reform” would give
renters up to $1,000 a month in subsi- dies, but only if their city agrees to new construction. Another proposal sug- gests giving households cash rebates funded by federal taxpayers if local governments meet housing targets. Critics, though, have pointed out
that these plans reward cities that created the crisis through restric- tive zoning, do little to address long- term supply, and create new federal entitlement spending that taxpayers would shoulder indefinitely. Even the Times admitted these incentives may do little, given that polling shows only 24% of Americans believe new housing in their commu- nity would lower costs.
THE UNITED STATES HAS A HOUSING SHORTAGE
OF 2 MILLION HOMES Shortage of housing units, 1965–2025 FOR-SALE DEFICIT (SURPLUS) FOR-RENT DEFICIT (SURPLUS)
−3M −2M −1M
PENT-UP HOUSEHOLDS One of the most striking elements
of the Times’ analysis is the collapse in construction productivity. While U.S. manufacturing productivity surged 900% from 1950 to 2020, con- struction productivity has fallen over the same period. U.S. housing is still built by hand,
on-site, with little innovation. That’s a stark contrast to countries such as Sweden, where more than 40% of new homes are factory-built modu- lar units. Liberals now want government-
run programs to revive modular hous- ing — an idea first championed by Republican George Romney, the Nix- on-era HUD secretary. Yet even here, public projects are
plagued by waste. In cities such as Washington, D.C., and San Fran- cisco, affordable housing routinely costs $600,000–$800,000 per unit to build, according to investigations cited by the Times. Trump and conservatives argue
+1M +2M +3M
1970 1975 1980 1985 1990 199 2000 2005 2010 2015 2020 2025 SOURCE: Cristian deRitis and others, “Bringing the Housing Shortage Into Sharper Focus” (New York: Moody’s Analytics, 2025)
that America cannot build its way out of the crisis until local zoning boards are forced to open neighborhoods to new homes, regulations that inflate construction costs are slashed, and private-sector innovation, not federal subsidies, drives supply growth. America’s housing crisis is struc-
tural, bureaucratic, and decades in the making; it will take more than federal promises to undo it. For young families to thrive
again, the country needs to unleash builders, cut red tape, and stop let- ting local bureaucrats block the American dream.
JANUARY 2026 | NEWSMAX 17
ISTOCK.COM/ALEXEY PROTASOV
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