American homebuyers have found plenty of villains for today’s brutal housing market: the Federal Reserve, Wall Street landlords, even their baby boomer parents who refuse to move. But Bank of America Research argues the real culprit is hiding in plain sight in your own backyard.
In a new housing symposium report, BofA Global Research says there is a “fundamental disconnect between housing policy and the underlying supply shortage,” and voters are fixated on the wrong enemies like interest rates and institutional investors instead of a faceless villain: time itself. Specifically, the problem is the decades‑long failure to build enough homes. While affordability polls as a top concern, the bank’s policy panel warns the politically painful fixes needed to boost supply remain largely off the table, leaving the market “stuck” even as mortgage rates begin to inch lower.
Blame the zoning board, not just the Fed
According to the BofA panel, most housing decisions still live and die at the local level, where zoning rules and “Not‑In‑My‑Backyard” resistance keep new supply from ever getting permitted.
“Most housing decisions are controlled at the local level, where ‘Not‑In‑My‑Backyard’ (NIMBY) dynamics and political resistance to new development remain strong,” the report notes.
