While supply concerns are still weighing on housing affordability, a combination of soaring prices and economic uncertainty is dragging on housing demand, according to the annual State of Nation’s Housing report from the Harvard Joint Center for Housing Studies (JCHS). The study noted that the economy added just 116,000 jobs in 2025, the lowest number of new jobs added in a non-recession year since 2002. …But housing supply issues are still a major concern in the market. …The report also details how federal, state and local officials are quickly moving to address housing supply. …Growing numbers of state and local governments are loosening local zoning and land-use regulations to increase the availability of buildable land. …In a positive development for the industry, the report notes that remodeling activity is surging. Over the last 10 years, owner home improvement spending grew by 153%, far outpacing growth in spending on new multifamily (84%) and single-family development (90%).