Incomes in the United States are rising, but home prices are rising much faster in some highly regulated markets. While overall homeownership rates have increased since 2016, some disadvantaged groups lag behind. As households turn to the rental market, moderate-income households are dedicating a large share of their incomes to rent. The housing affordability problem shows no signs of subsiding in certain markets, as housing construction fails to keep up with demand, putting upward pressure on home prices and rents. The majority of areas in the United States have relatively well functioning housing markets in which regulations do not significantly drive up prices.

Fortunately, the majority of areas in the United States have relatively well functioning housing markets in which regulations do not significantly drive up prices. Indeed, smart regulations that balance the need to build enough housing to meet growing demand while reflecting the reasonable concerns of neighborhood residents are achieved by many growing areas in the country. While areas with relatively moderate home prices may still suffer from some issues, such as delays for building permits, regulations do not necessarily make homes substantially less affordable.