State and Local Reforms Help Ease Housing Shortage

Balancing housing supply with growing demand is essential for improving affordability, driving economic growth, and supporting workforce mobility. Yet, the U.S. housing market is severely strained due to a fundament imbalance between supply and demand. A severe shortage of over 4.7 million homes has created cascading economic and social challenges, from skyrocketing prices to reduced workforce mobility. 

Addressing this shortage is essential for supporting long-term economic growth. Some state lawmakers and decision-makers are focused on how common-sense reforms can expand housing stock and help make owning home ownership more accessible.

“Everybody wants affordable housing, but nobody wants it near them,” said State Rep. K. Joseph Shekarchi, House Speaker of the State of Rhode Island General Assembly, at the U.S. Chamber of Commerce’s housing summit in November 2025.

Shekarchi said that one of the missing participants in the debate about boosting the availability of affordable homes is one of the most vital ones: the business community.

“We need the business community to step up,” he said. “Because it’s a direct benefit to you, your business, and your community.”  

Shekarchi said his state implemented two reforms to boost housing: Allowing online permitting for new homes and greenlighting accessory dwelling units (ADUs), smaller additional living spaces on the same lot as a single-family home.

According to Shekarchi, the solution for Rhode Island was simple: Find a way, any way, to build more housing and stick to it.

“The only way I’ve found to really make a dent in housing prices is to increase the supply,” Shekarchi said.

Brita Wallace, General Counsel of Texans for Reasonable Solutions, said a broad coalition including religious groups, think tanks and organizations from the left helped to advance housing reform in the state.

“Texas is at the forefront of housing reform largely due to the diverse, bipartisan coalition that has been built in Texas,” Wallace said.

Houston faces its own unique challenges. While well known for having no zoning laws, the city faces challenges from natural disasters—especially hurricanes and storms—which periodically wipe out significant amounts of local housing stock.

One solution is building homes that can withstand more damage.

“We’re looking at existing housing inventory, but how we can design and build for the future to make sure it’s resilient and protects people’s financial investment,” said Tiffany D. Thomas, Council Member, Houston City Council.   

See the Chamber’s website for more on the state of housing in America.

About the author

Thaddeus Swanek

Thaddeus is a senior writer and editor with the U.S. Chamber of Commerce's strategic communications team.

Read more