The report states that the number of renter households fell for the second consecutive year in 2018, a stark contrast to the increases the prior 12 years. However, rents are rising at twice the rate of overall inflation.

CAMBRIDGE, MA—A recently released report by the Harvard Joint Center for Housing Studies states that household growth is now back from post-recession lows, but new home construction continues to fall short of demand.

The “State of the Nation's Housing 2019″ report released earlier this week at the Federal Reserve Bank of Atlanta found several factors that may be contributing to the slow construction recovery, including excess supply following the housing boom, which took years to absorb, and persistent labor shortages.

“The most significant factors, however, are rising land prices and regulatory constraints on development,” says Chris Herbert, managing director of the Harvard Joint Center for Housing Studies. “These constraints, largely imposed at the local level, raise costs and limit the number of homes that can be built in places where demand is highest.”