Pew analyst tells Maine committee U.S. housing shortfall is millions of units; zoning and permitting changes cited as remedy

Alex Horowitz, director of housing policy at The Pew Charitable Trusts, told the Maine Legislature's Joint Committee on Housing and Economic Development on March 13 that the nation faces an ‘‘enormous housing shortage’’ that helps explain steep price and rent gains.

Horowitz said the shortfall is ‘‘about 4 million to 7 million homes’’ in the United States and that Maine has seen inventory ‘‘essentially collapse’’ since 2019. In his presentation he cited two headline measures: median home prices in much of the country have climbed sharply since 2019 and rents in Maine rose about 33 percent from the start of 2020 through early 2026.

Horowitz said those trends stem from a simple supply–demand imbalance: ‘‘When there aren't a whole lot of homes out there, that creates a significant sellers market,’’ he said. He argued that higher housing production, not rent control or inclusionary rules alone, is the most reliable way to ease cost pressures. ‘‘Places that have made it easier to build have added housing faster and experienced slower rent growth,’’ he said, pointing to Austin, Raleigh and Minneapolis as jurisdictions that matched rising population with faster housing production.

Committee members pressed Horowitz on how quickly policy changes show measurable effects. Horowitz said the timeline varies: some policies such as allowing accessory dwelling units or relaxing rules about unrelated people sharing a house can take effect quickly, while larger multifamily development follows the pace of permitting and construction. He also said local infrastructure constraints — sewer and water availability — limit where certain reforms will be effective.

Why it matters: The committee is weighing a package of bills that would change local lot-size and density rules, establish incentive programs to encourage industrialized housing, and create a state blue-economy center. Horowitz’s presentation framed the debate around what combination of regulatory, fiscal and programmatic tools is most likely to increase Maine’s housing supply.

What’s next: Members used Horowitz’s evidence during later work sessions to weigh whether proposed bills focus on demand-side support or supply-side incentives and where state leadership should prioritize funds or statutory changes.