The U.S. economy is being impacted by suburban sprawl.

• In 2021, single-family housing starts hit a record high of 1.123 million since 2006.
• Detached homes have occupied large amounts of land near lucrative job markets.
• The shortage of buildable residential land is driving lower-income Americans out of the housing market.

America’s suburbs are sprawling again.

Despite a rise in single family housing starts to 1.123 million last year, the National Association of Home Builders reports that options for prospective homebuyers remain limited.

According to experts, the issues with America's housing market stem from past policy decisions, specifically restrictive zoning codes that limit housing supply. These codes were established based on 1930s-era Federal Housing Administration guidelines for mortgage underwriting, which include "no sidewalks and curvy dead-end streets," as stated by Ben Ross, author of "Dead End: Suburban Sprawl and the Rebirth of American Urbanism."

Ross and others contend that more needs to be done to manage residential real estate development. Ross resides in Montgomery County, Maryland, which recently amended its zoning code to increase population density in the area. The county lacked many alternative options, as 85% of buildable land is already developed.

Due to strict zoning laws that prioritize single-family homes, the availability of land for multifamily construction has been restricted, resulting in higher land prices and making those projects unfeasible for builders.

Homebuyers today are paying for past sprawl by using credit to fund their lifestyles, while the cost of maintaining public infrastructure is putting a strain on depopulating towns across the country.

The video above explains how suburban sprawl shapes the U.S. economy.