How Can the United States Close its 1.2 Million Gap in New Homes?

The U.S. faces a shortage of over 1.2 million homes, mainly in single-family construction, due to zoning, land, and labor constraints. Vacancy rates are extremely low in key cities, intensifying supply pressure. Increasing prefab factory-built homes from under 3% to 15-25% could help close the gap. Tariffs on lumber and materials have raised new home costs by about $9,200, prompting price cuts and sales incentives.