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One Reason For Housing Shortage: Lack of Permits
In theory, it would make sense that builders put up homes in U.S. regions that are adding jobs more quickly. In reality, that isn’t happening. In many states, job growth is far outstripping the number of new housing units authorized.
According to the National Association of Realtors (NAR), six California metros are among those with the slowest pace of home-building compared to job growth. San Francisco has authorized one permit for every 6.4 jobs. On the other side of the coin is Houston. With its lax zoning, Houston has authorized one new permit for every 1.3 jobs.
In addition, there can be a mismatch between the places people want to live, and where land is actually available. Added to labor shortages, zoning laws and regulatory costs, finding and buying a house will likely continue to be difficult. At least until “the builders build homes, or real estate investors unload homes onto the market,” the NAR’s Lawrence Yun told Bloomberg.
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