An industry group's analysis projected that by 2035, the US could have more homes listed for sale than people looking to buy or rent.
Slower population growth, lower birth rates, aging demographics, and reduced immigration are expected to shrink household formation across the US over the next decade.
Pandemic-era low mortgage rates temporarily intensified the shortage, but demand later cooled while post-pandemic construction stayed elevated, creating conditions for a future supply-demand mismatch.
If builders keep adding homes at the current pace, some local markets could see softer prices, more buyer choice, and slower equity gains.
The expected release of homes from aging owners was described as gradual, not sudden, meaning supply may build over many years rather than surge.
