Housing is a basic human need, yet affordable housing is increasingly difficult for Americans to attain. Why is there a shortage of affordable homes? And how we can work together to bring solutions that will make homes affordable and accessible?

Two decades of underbuilding and underinvestment in housing[1]—especially the construction of affordable homes—has created an enormous gap between housing supply and demand that will require a national effort to close. There is now between 5 million to 6.8 million housing units missing from the housing inventory[2]. This supply-demand gap has driven a consistent and drastic rise in home prices that puts the dream of homeownership out of reach for many Americans. Without action on the federal level, the shortage of adequate affordable homes will continue to worsen and have a host of negative consequences for homebuyers and communities.

The “perfect storm” of increased demand and low supply over the past year has created a competitive housing market. In areas like New York, Boston and the Bay Area, severe supply shortages have skyrocketed home prices leaving millions of low and middle-income families unable to afford centrally located homes.

The median price for a single-family home in San Francisco has reached $1.8 million[3]; even with today’s low interest rates, that requires a monthly mortgage payment of roughly $7,500, assuming the family puts down the standard 20 percent.

The problem now even extends to rural areas across the country where many families are spending half or more of their income on housing[4].

Over the last few months, the hope of returning to normalcy has fueled an increase in consumer spending overall. The housing market has followed suit: low mortgage rates and positive consumer sentiment have sparked a sudden interest in homebuying[5]. Housing prices are skyrocketing because the demand is so great, and the supply is so thin.