There is not enough housing for sale or rent in communities across the country. This means families must pay more for their housing, renters have less to get by on at the end of the month, homeownership is out of reach for too many, and those of modest means are forced to live farther from decent jobs. The effects of the housing shortage are significant, both economically and socially.

To address the problem, policymakers must tackle a host of challenges outside the traditional reach of housing policy—in trade, immigration, education, taxes, and even municipal decision-making. Yet, if they succeed in taking the steps needed to close the gap between the housing we have and the housing we need, the benefits will be considerable. Housing would become more affordable, leading to more household savings, greater access to homeownership, and increased upward mobility. Difficult as the housing supply challenge is, it is worth taking on.