America’s housing market is in deep trouble, with prices soaring beyond the reach of everyday families chasing the dream of homeownership. This isn’t just a market glitch—it’s a man-made mess rooted in decades of poor decisions that have strangled supply and inflated costs. Market experts lay out three core culprits behind this affordability nightmare, and fixing them could restore opportunity for millions.

First off, zoning rules across the country act like iron gates, blocking new homes from being built where they’re needed most. Communities cling to outdated restrictions that favor the status quo over growth, leaving potential buyers out in the cold.

“There are just many, many ways to halt and stop development,” said Joseph Gyourko, professor of real estate and finance at the Wharton School at the University of Pennsylvania. “And we’ve gotten very, very good at it in the United States.”

Then come the land-use hurdles, a tangled web of regulations that pile on expenses and drag out timelines for builders. From local mandates forcing developers to foot the bill for infrastructure like roads and utilities, to outright efforts to slow down progress, these barriers turn affordable projects into luxury-priced realities.

Jim Tobin, president and CEO of the National Association of Home Builders, put it plainly: “Regulatory burdens really do add up on the unaffordability index. We estimate that 24% of the cost of a single-family home is embedded in regulations at all three levels of local, state and federal government. That comes out to roughly $94,000 in regulatory costs.” He added, “Sometimes there are communities that just regulate because they want to impede growth, they don’t want more homes built.” And on the delays: “Time is money in real estate. You own the land, you’re paying taxes and, while you wait for local approvals, costs keep rising. Then many communities require developers to install sewer, water, roads and electrical infrastructure and all of that gets folded into the final price of the home.”

Financial policies round out the trio, keeping interest rates elevated and regulations tight, which chokes off new construction. Cutting back on wasteful government spending could ease borrowing costs and clear the path for more homes, revitalizing the market that underpins American wealth-building.

E.J. Antoni, chief economist at the Heritage Foundation, explained: “The best way to thaw this frozen housing market is to reduce government spending to relieve pressure on interest rates and roll back burdensome regulations. [He added that such steps] would in turn increase production of new homes.”

This crisis hits hard at the heart of what makes America strong—families building equity through their homes, passing on stability to the next generation. As Tobin warned, “The more we delay ownership, the later we delay wealth creation in this country. And that’s the challenge ahead of everybody right now.”

Without bold action to boost supply, we risk a generation locked out of the prosperity that homeownership brings, weakening the economic foundation we’ve fought to build.