Klein: Here's how bad the U.S. housing crisis is and what can be done about it

"Home prices have risen more than 50% since the pandemic. About a third of American households now spend more than 30% of their income on housing. In 2014, the median age of a first-time homebuyer was 31. In 2025, it was 40 the highest on record. The core of the problem is simple: Too much money chasing too few homes. How many more homes does America need? I've seen estimates ranging from 2 million to 5 million."

"Every White House since President Barack Obama's administration has recognized the need to build more homes but the results, under both Democrats and Republicans, have been anemic. Housing is a hard problem to solve from the Oval Office. Zoning and building rules are set at the state and local levels. Interest rates are set by the Federal Reserve. In 2024, Kamala Harris promised to build 3 million"

Home prices have risen more than 50% since the pandemic. About a third of American households now spend more than 30% of their income on housing. The median age of first-time homebuyers rose from 31 in 2014 to 40 in 2025. Estimates of additional homes needed range from 2 million to 5 million. In 2025, the United States built fewer homes per 100,000 people than in 2005, 1995, 1985, or 1975. Federal efforts have produced limited results because zoning and building rules are set locally and interest rates are set by the Federal Reserve. A proposed federal plan would use incentives to push cities and states to build more housing.

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