For decades, the prescription for America’s housing crisis has been remarkably simple: Build more homes, but what if we’ve misdiagnosed the problem?
In the latest episode of The Valuation Metric, Green Builder Media CEO Sara Gutterman digs into new housing data that reveals a much more complicated market—one experiencing what she calls “scarcity and slack” at the same time.
Existing home sales are near a 30-year low. Rental and for-sale vacancies are rising. Household formation has slowed. And homeownership has slipped for the second consecutive year.
Meanwhile, buyers say their biggest obstacles aren’t simply finding a home. They’re home prices, down payments, interest rates, income, insurance and property taxes.
The mismatch extends to the homes themselves. COGNITION Smart Data research shows that 87 percent of consumers would accept a smaller home if it meant they could own sooner, while buyers increasingly prioritize energy efficiency, optimized layouts and lower operating costs.
So yes, America needs more housing.
But the more important questions may be: More of what? At what price? For whom? And at what cost to own?
Watch the full episode of The Valuation Metric as Sara challenges one of housing’s most persistent assumptions—and explains why solving the affordability crisis may require changing not just what we build, but how we measure value.