American land use regulations and mortgage financing are hindering a building boom, with an estimated 15 to 20 million units needed to combat excess rent inflation. Closed Access cities like NYC, LA, SF, and Boston could benefit the most, with a potential capacity to house 9 million more residents. However, filling the nationwide gap wouldn’t necessarily increase population but rather create more households and vacant homes. The shortage is nearly double in Closed Access cities compared to the rest of the country, with 4 million new homes potentially attracting 4 million additional residents. The high prices in these cities are set by families forced to move due to a lack of affordable housing. Incomes are higher in Closed Access cities due to rent inflation, with real income growth similar to the Midwest pre-2008 financial crisis. The potential return of displaced residents could impact income and population growth in these cities, potentially making them more average. If all 15 million new homes are built in Closed Access cities, they could surpass average growth rates with increased housing permits. The return of displaced residents could impact population growth in fast-growing regions like Florida and Arizona.

Read more at Investing.com: The Real Housing Crisis: How Overstated Demand Masks Regional Displacement