Housing affordability is structurally constrained—not cyclical.

dv01’s latest analysis of housing supply, household formation, and long-term cost dynamics shows that affordability pressures are driven by persistent structural imbalances—not temporary market cycles.

Quick Insights

• The U.S. housing market remains undersupplied, with housing starts trailing household formation by ~3 million units since 2010—and likely over 5 million when accounting for broader factors

• Affordability gains seen between 2018 and 2022 have fully reversed, reducing household formation and increasing cohabitation trends

• Housing continues to take up a growing share of household income, particularly among younger cohorts

• Supply constraints are widespread across geographies, reinforcing a persistent national shortage

• Structural factors—labor constraints, zoning restrictions, and limited productivity growth in construction—continue to restrict supply response