The housing shortage in the U.S. could be addressed through deregulation, according to an industry executive.
"It's in the progressive states where we have seen — California, as an example — take a page from the red states and significantly deregulate housing," Redfin CEO Glenn Kelman told FOX Business, citing examples like "setting aside zoning requirements, parking requirements" and "environmental reviews."
He said, "People who left California for Texas and Florida finally scared that state legislature into a significant bout of deregulation. And builders who wouldn't have set foot in some parts of California are coming back."
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The focus should be on ramping up supply and ensuring "affordable housing for the next generation."
Kelman said that if regulations make homebuilding easier, it could spur "an enormous wave of economic growth and optimism and prosperity," not only for boomers but also for younger generations.
His comments come as Redfin reported that there has been a slight increase in the supply of homes ahead of the spring homebuying season. During the four weeks ending March 17, the total number of U.S. homes for sale increased 5%, marking the biggest annual uptick since May 2023.
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Meanwhile, new listings jumped 15% during that same four-week period. That's the biggest increase since June 2021, according to the data.
Even though this has prompted some buyers to jump back into the market, the increased inventory hasn't made a material impact on prices.
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Redfin data showed that the median U.S. home-sale price is up 5.3% year over year, the second-biggest increase since October 2022. The median monthly housing payment is also $31 shy of its all-time high because of high mortgage rates and prices.
