What's happened
European and American housing markets face significant challenges, with record low building rates, rising costs, and affordability issues. The US struggles with a home shortage of up to five million, while UK housebuilding hits a nine-year low amid rising costs and regulatory hurdles. Policy responses vary widely.
What's behind the headline?
The current housing crisis in both the US and UK reveals systemic issues rooted in policy and economic constraints. In the US, decades of underbuilding and zoning restrictions have created a significant supply gap, with estimates suggesting up to five million homes are needed. Despite political promises, actual construction remains far below targets, exacerbated by rising interest rates and construction costs.
In the UK, housebuilding has slowed to its lowest level in nine years, with only around 208,600 new dwellings built in 2024/25. Rising costs of materials and stricter safety and design standards have increased development expenses, making many sites unviable. The government’s measures to boost supply, including relaxed affordable housing targets, are seen by some as insufficient or temporary.
Both countries face a fundamental dilemma: balancing safety, affordability, and regulatory standards against the urgent need for more homes. The US’s reliance on market-driven solutions and the UK’s regulatory environment are both contributing to stagnation. Without significant policy overhaul, the housing shortages will likely worsen, impacting affordability and social stability.
What the papers say
The Guardian highlights how European countries differ in housing organization, emphasizing that many nations see housing as a social right rather than an asset, which influences policy debates. Ezra Klein of the New York Times discusses the US's persistent underbuilding, noting that despite political promises, construction rates remain below historic levels, and the homeownership age has increased to 40. Sky News reports on the UK’s slow housebuilding, citing rising costs, regulatory burdens, and government measures that may only be temporary. The articles collectively underscore that both nations face structural barriers—economic, regulatory, and political—that hinder effective housing development, with no quick fix in sight.
How we got here
Housing shortages have been building for years, driven by rising property prices, regulatory hurdles, and economic factors. The US has faced a persistent gap of up to five million homes, while the UK has struggled with slow building rates amid rising costs and stricter standards. Governments have pledged targets, but progress remains limited.
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Common question
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Why Is Housebuilding in England So Slow Right Now?
Housebuilding in England has hit a nine-year low, with fewer homes being built than ever before. Rising costs, stricter regulations, and economic pressures are making it harder for developers to keep up with demand. Many are asking: what's causing this slowdown, and what can be done about it? Below, we explore the main factors behind the housing crisis and what might help turn things around.
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Why Are Homes Still Scarce Despite High Demand?
The global housing crisis continues to worsen, with shortages in the US and UK reaching critical levels. Despite government promises and efforts, building rates remain low, and costs keep rising. Many wonder what’s behind these persistent shortages and how they impact everyday life. Below, we explore the main reasons for the housing crunch, its effects, and potential solutions.
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Why Is Housing Affordability Getting Worse in the US and UK?
Housing affordability is a growing concern in both the US and UK, with many people wondering why prices keep rising and homes remain out of reach. Factors like rising costs, regulatory hurdles, and slow building rates are making it harder for many to buy or rent homes. Below, we explore the main reasons behind this crisis and what might be done to fix it.
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Why Are US and UK Housing Markets Facing a Crisis Now?
The housing markets in the US and UK are currently experiencing significant challenges, with record low building rates, rising costs, and affordability issues. Many wonder what’s causing this crisis and what it means for homebuyers and renters today. Below, we explore the main factors behind the housing shortage, government responses, and what the future might hold for those looking to buy or rent a home.
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