The State of Housing (Un)Affordability in the US

Goldman Sachs

Research

16 Pages

Goldman Sachs analyzes how years of underbuilding and higher borrowing costs have eroded housing affordability in the United States. The piece estimates the size of the national housing shortfall, explains why supply has become less responsive to rising demand, and evaluates how zoning reform and other policy tools might help. It concludes that policy changes can narrow the gap but are unlikely to quickly restore past affordability levels.

Date published: September 30, 2025

Source: Department of Commerce, Goldman Sachs Global Investment Research. As of September 30, 2025.

Key Takeaways

Affordability squeeze: Housing costs for buyers and renters have risen faster than incomes, especially since the financial crisis.
Structural supply limits: Restrictive land use, limited urban land and weak construction productivity have made new buildings less responsive.
Policy trade offs: Relaxing land use rules could add around 3 to 4 million homes but faces political and practical constraints.
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