I just reviewed some very interesting data published recently by the White House about the housing crisis in the United States. It turns out that the shortage of single-family homes is much more severe than many initially thought.

According to the President's Economic Report, if the construction of single-family homes had maintained its historical pace instead of declining after 2008, we would currently have 10 million additional homes. That is a huge figure. To put it into context, previous studies reported much lower numbers: Freddie Mac estimated 3.7 million units last year, and the National Association of Realtors mentioned 5.5 million back in 2021.

What’s interesting is that these numbers vary quite a bit depending on the methodology. Some calculate only based on population demand, others compare longer-term historical trends. But all point to the same thing: there is a significant deficit.

And of course, all this comes to light just as politicians in Washington are under pressure. Housing affordability has become a key electoral issue, especially ahead of the midterm elections. Voters are tired of impossible prices, so policymakers need to show they are taking action. Reports like this, with such an alarming deficit, are part of that strategy to demonstrate they understand the magnitude of the problem.