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That should eventually affect prices, but affordability remains an issue

By Mark Huffman of ConsumerAffairs

• The U.S. housing shortage remained at approximately 4.7 million homes in 2024, growing by just 43,000 units.

• A surge in apartment construction helped housing supply nearly keep pace with the formation of new households.

• The shortage continues to drive high prices, particularly in New York, Los Angeles, Boston and San Francisco.

Americas housing shortage is one reason home prices remain stubbornly high. Since the 2009-10 housing market crash, residential construction has been about half of what it was before the crash.

But in good news for buyers, builders are starting to close the gap. In fact, a Zillow analysis shows the housing shortage has stopped growing significantly for the first time in years.

The housing deficit the gap between buyers and available homes totaled approximately 4.74 million units in 2024, an increase of just 43,438 homes from the previous year, according to the analysis.

That was a substantial improvement from 2022, when the shortage grew by nearly 257,000 homes, and 2023, when it increased by more than 159,000.

The country is not yet building its way out of the hole, but we stopped digging, Zillow senior economist Orphe Divounguy said.

The deficit is Zillows estimate of the difference between the number of families that may want their own homes and the number of housing units available to buy or rent. In 2024, an estimated 8.17 million families were doubling up, or sharing homes with people outside their families, while only about 3.43 million homes were available.

Construction boom helped stabilize supply

The total number of U.S. housing units increased by about 1.4 million in 2024. Zillow said the increase was fueled by the completion of more multifamily housing units than in any year in the previous half-century.

That new supply was almost enough to accommodate the years increase in households seeking housing. It marked an important change after nearly two decades of underbuilding that began following the 2008 financial crisis.

The additional supply also appears to be helping affordability, although buying a home remains difficult for many consumers.

Zillow estimated that 35.2% of homes listed for sale in May 2026 were affordable to a household earning the median income, up from 30.8% a year earlier. A home was considered affordable if its monthly mortgage payment consumed no more than 30% of household income, assuming a 20% down payment.

That is an improvement from 2023, but still far below 2021, when an average of approximately 54% of listings met Zillows affordability standard.

Shortage varies widely by market

The housing deficit remains concentrated in some of the nations largest and most expensive metropolitan areas.

New York had the largest estimated shortage at nearly 406,000 homes, followed by Los Angeles at about 345,000. Boston, San Francisco and Washington, D.C., also had some of the largest deficits.

Affordability was particularly limited in those markets. Only 5.1% of Los Angeles listings in May were considered affordable to a median-income household. The shares were 13.8% in New York, 14.8% in Boston and 15.9% in San Francisco.

Conditions were better in some markets where construction has been stronger. Zillow said cities with fewer building restrictions generally responded more quickly to increased housing demand, helping rents and prices moderate sooner.

Zillow said closing the national deficit will require communities to allow more housing density, simplify permitting and expand financing for manufactured homes. Even with construction improving, eliminating a shortage of nearly 5 million homes is likely to take years.

But the company remains the focus of the investigation into the outbreak

By Mark Huffman of ConsumerAffairs

• The FDA has withdrawn its report that a Taylor Farms lettuce sample tested positive for Cyclospora, saying the result was a false positive.

• Taylor Farms says the reversal supports its position that no product testing has confirmed Cyclospora in its lettuce, but federal investigators say epidemiological and supply-chain evidence still points to the company.

• The recall remains in effect, and consumers should not eat the affected iceberg lettuce even though the laboratory result was invalid.

Taylor Farms is pushing back against the suggestion that its lettuce has been conclusively identified as the source of a large Cyclospora outbreak after the Food and Drug Administration acknowledged that a supposedly positive product test was wrong.

The FDA reported July 18 that a sample of lettuce supplied by Taylor Farms de Mexico had tested positive for Cyclospora, a microscopic parasite that can cause prolonged diarrhea and other gastrointestinal symptoms.

One day later, the agency reversed itself. FDA laboratory experts reexamined the results and concluded that the finding did not represent true amplification, meaning the test should be considered a false positive.

As of July 19, 2026, there are no confirmed positive sample results for product testing for Cyclospora, the FDA said in its updated investigation notice.

Taylor Farms quickly highlighted the mistake.

FDA informed Taylor Fresh Foods that one of its iceberg lettuce products from central Mexico tested positive for Cyclospora, the company said. Today, we were informed that FDA made a mistake, and this was a false positive.

Taylor Farms said the FDA apologized to the company, although the agency reportedly disputed that characterization. Regardless, the FDA has publicly acknowledged that the laboratory result was invalid and removed references to it from its earlier update.

Taylor Farms remains under investigation

The false positive does not fully clear Taylor Farms, however.

Federal health officials say their investigation was not based solely on the product test. The FDA said Monday that epidemiological evidence and product-tracing records continue to converge on shredded iceberg lettuce from Taylor Farms operations in central Mexico.

The agency said the erroneous test does not change the basis for the continuing investigation or the evidence supporting the companys voluntary recall.

The Centers for Disease Control and Prevention has also said epidemiological and traceback evidence links Taylor Farms de Mexico iceberg lettuce to illnesses reported in Indiana, Kentucky, Michigan, Ohio and West Virginia.

Among 190 patients who reported eating at Taco Bell and provided detailed food information, 90% said they ate iceberg lettuce, according to the CDC. Investigators traced the lettuce supplied to affected restaurant locations to Taylor Farms de Mexico.

As of the latest federal update, the five-state outbreak included 1,644 confirmed illnesses, 94 hospitalizations and no deaths.

Taylor Farms said its recall was initiated in an abundance of caution based on information supplied by health officials. The company removed all iceberg lettuce sourced from central Mexico from the U.S. market, even though investigators had focused on a specific independent farm that accounted for less than 1% of the nations iceberg lettuce supply.

The company stressed that other Taylor Farms products, including Taylor Farms-branded products available to consumers, are not included in the recall.

Recall remains in effect

The FDA is continuing to advise consumers, restaurants and retailers not to use recalled iceberg lettuce distributed by Taylor Fresh Foods. The recall includes certain Marketside iceberg salad and shredded lettuce products sold at Walmart, along with numerous products distributed to restaurants and other food-service customers.

Taco Bell said it stopped using lettuce from Taylor Farms de Mexico on July 17.

Consumers who have recalled lettuce should throw it away or return it for a refund. Surfaces and containers that touched the lettuce should also be cleaned and sanitized.

The false positive leaves the investigation in an unusual position: Taylor Farms remains the governments leading focus based on illness patterns and supply-chain records, but there is currently no laboratory-confirmed product sample proving that its lettuce contained the parasite.