Unpacking the Foundations of the Housing Shortage
Over the past hundred years, the United States housing market has experienced significant changes, influenced by economic trends, public policy and evolving societal needs. Two major shortages impacted the market in different ways. First, following World War II, millions of service members, demobilizing from the largest military operation in history, returned to an America not yet equipped for the massive economic boom about to ripple through the nation. The amount of homebuilding and lending between 1945 and 1955, fueled by the largesse of the GI Bill of Rights, was unprecedented, virtually creating the American middle class.
Fast forward to today. The nation is grappling with a shortfall of roughly 3.5 million homes, a key factor contributing to widespread affordability challenges. This housing shortage is the result of decades of insufficient homebuilding, economic disruptions and misaligned financial motivations.
In his latest white paper on the housing shortage, Jeff Lanier traces the roots of the crisis back to the post-war era, highlighting not just the influx of returning soldiers, but also the government's ambitious efforts to address the housing demand. To find solutions to today’s housing gap, Lanier suggests we revisit the past. Understanding how previous generations tackled similar issues may help us answer a pressing question: Are we capable of rising to the challenge once again?
Key Takeaways for Title Agents
As the industry continues to navigate the current market, we offer insight into past housing shortages and how to look forward.
- How did the government build its way out of the post-WW II home shortage?
- What has yet to be rebuilt in today’s housing crisis?
- What is the relationship between inventory and affordability?
- How is policy shaping the mortgage market?
Want to Stay Ahead? Understand the Housing Shortage First.
What can title agents do to manage this need to build our way out of low inventory? Learning how factors from economic policy to credit affect the market will provide key insights that can give informed agents an edge. Proactive, data-driven insights are essential to protect your deals, guide your clients and stay competitive. Download Jeff Lanier’s white paper to get the full picture and sharpen your title agency’s strategy for the months ahead.
Read Jeff Lanier’s Other Economic Reports
1Q25 Agency Economic Report
4Q24 Agency Economic Report
3Q24 Agency Economic Report
2Q24 Agency Economic Report
1Q24 Agency Economic Report
Disclaimer: Opinions, estimates, forecasts, and other views contained in this document are just that – opinions based on the few certainties that exist right now and long-term trends. They do not necessarily represent the views of Stewart or its management and should not be construed as indicating Stewart’s business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current, or suitable for any particular purpose. Readers should rely on their own research and due diligence. All content is intended for internal use by Stewart agents only. Alteration of this document or its content is strictly prohibited.