Housing at a Breaking Point: My Take on the Three Big Problems—And the Three Best Solutions

 


I’ve been reading, writing, and talking about housing for years, and one thing hasn’t changed: the lack of affordable single-family homes in this country isn’t a sudden COVID-era problem. Long before the pandemic, whitepapers, studies, and experts were sounding the alarm. What has changed is that today, the housing crisis is hitting more people, in more communities, and with more urgency.

When you stack up all those reports—whether they come from think tanks, universities, or housing advocates—you start to notice the same three themes echoing through every page. And after decades in and around construction, I agree: these are the three biggest obstacles holding us back.

The Three Big Problems

1. Zoning and Regulatory Handcuffs

Local zoning has become a straitjacket. Entire swaths of land are locked into single-family only, with strict limits on what can be built, how tall it can be, how many units can go on a lot, and how much parking must surround it. These rules were written in another era and don’t match today’s realities. They choke supply before a single foundation is poured.

2. A Supply and Demand Gap the Size of the Grand Canyon

For decades, the U.S. simply hasn’t built enough homes to keep up with population growth, household formation, and economic migration. Families and young buyers chase the few homes available, driving prices through the roof. That shortage is no longer limited to “hot markets”—it’s everywhere, from big coastal cities to small towns.

3. The Cost of Building Is Outpacing the American Paycheck

Even if zoning allowed more homes, the cost of land, labor, and materials keeps climbing. Add long permitting delays, fees, and financing hurdles, and it’s no wonder builders shy away from creating entry-level homes. Too many developments pencil out only for luxury units or rental apartments.

The Three Best Solutions

1. Reform Zoning to Match Today’s Needs

We need to loosen the grip of single-family zoning and make room for what’s often called the “missing middle”: duplexes, triplexes, small multifamily, and accessory dwelling units (ADUs). We should also encourage denser housing near jobs and transit, and stop treating parking spaces as sacred ground. Without this reform, every other solution is just patchwork.

2. Streamline the Red Tape and Lower the Barriers

Time is money in construction. Cities that cut permitting delays, simplify approvals, and reduce fees see more housing built faster. Developers need predictability. By-right approvals where zoning already allows housing—and fewer discretionary hoops—would cut months or even years off project timelines.

3. Build Smarter and Faster with Offsite Construction

This is where my own experience comes in. Even if zoning is reformed and approvals are streamlined, we still face the brutal math of construction costs. Offsite construction—modular homes, panelized systems, and factory-built components—offers a way to bring costs down while improving quality and speed. Factories can build homes in controlled environments with less waste, fewer weather delays, and faster turnaround. It’s not a silver bullet, but it’s a tool we’d be foolish not to use. Combined with targeted subsidies for lower-income households and programs that preserve existing affordable homes, offsite can finally help close the gap between what families need and what’s actually being built.

Where We Go From Here

The housing crisis isn’t going to be solved by wishful thinking. It will take communities willing to update zoning, governments willing to cut red tape, and builders willing to innovate. Offsite construction isn’t just part of the solution—it may be one of the only realistic ways to add supply quickly enough to matter.

For me, the conclusion is clear: we don’t have a housing affordability problem because people want too much. We have a housing affordability problem because our systems won’t let us build enough. Until we fix that, every family priced out of a home will be living proof of a nation that knows the answers but can’t summon the will to act.

Comments