Homes under construction at a new housing development in Richmond, Calif. Justin Sullivan/Getty ImagesThe U.S. construction industry missed its mark again as the country’s housing-supply gap grew to an estimated 4.03 million homes in 2025 from 3.8 million in 2024.Realtor.com’s 2026 Housing Supply Gap Report, issued on March 3, indicates that construction once again fell short in meeting housing demands, particularly from younger households. The data shows nearly 1.41 million new households were formed last year, compared with just 1.36 million housing starts.
US Housing-Supply Gap Widens in 2025 as Construction Trails Demand
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