Supply Shortfall: New home construction lagged household formation by ~50,000 units; cumulative gap exceeds 4 million homes.
Young Households Missing: About 1.82 million Gen Z and millennial households delayed forming due to high prices and low affordability.
Regional Differences: South has largest absolute deficit (1.62M homes), Northeast has the tightest gap relative to construction history.
Vacancy & Inventory: Homeowner vacancy remains low (1.2%), rental vacancy closer to historical norms (7.2%); new homes made up 15% of sales, highest since 2005.
Outlook: Closing the gap requires years of increased construction, targeted in high-demand areas; affordability constraints still slow first-time buyers.