Springfield Faces Housing Shortage Amid Slow Construction

Springfield, September 25, 2025

News Summary

Springfield is struggling with a housing shortage as new construction slows and costs rise. With only 129 new residential permits issued recently, the city’s housing market is under increasing strain due to a growing population and declining household sizes. Economic experts suggest a national shortfall of 5 million housing units. Labor and material costs are soaring, further impacting affordability. Springfield’s development code is being updated to encourage diverse housing options, but significant measures are needed to address these challenges and improve the housing landscape in the city.

Springfield Faces Housing Shortage Amid Slow Construction and Rising Costs

Springfield, along with many other cities across the U.S., is currently grappling with a significant housing shortage. The growing demand for housing has been the focus of recent conversations in Planning & Zoning meetings and City Council discussions. In the year 2024, Springfield issued only 129 permits for new residential builds, a number consistent with pre-pandemic levels, but markedly lower than figures prior to the Great Recession, which lasted from 2007 to 2009.

The city has seen a steady growth in population over the past 20 years. However, nationwide, the construction of new housing units has decelerated since the subprime mortgage crisis, resulting in prolonged recovery periods. Historically, the U.S. has averaged about 1.5 million new homes constructed each year over the last two decades. Yet, this rate is failing to keep up with the increasing population, thus placing added pressure on the housing market.

Long-term trends show a decrease in household sizes, leading to heightened demand for more housing units. More people are choosing to live alone or are postponing starting families, which increases the need for additional housing options. According to a chief economist, there exists a potential nationwide shortfall of 5 million housing units.

In Springfield, the Home Builders Association of Greater Springfield reported a 13% drop in building permits for single-family homes as of July 2025. This compares to a 6% decline nationally and a 4% decline at the state level. Interestingly, while overall housing permits are down, there has been an increase of over 30% in building permits for multi-family housing year-to-date.

The construction industry is currently facing a tightening workforce, which is slowing down the pace and number of projects completed. A lack of younger workers entering the trades, alongside the retirement of older contractors, has led to this workforce gap. To address this issue, various educational programs and grants have been introduced to attract new talent into the construction industry.

Moreover, the costs of labor and materials remain high in the aftermath of the COVID-19 pandemic, compounded by economic uncertainties resulting from fluctuating tariffs. Housing affordability has hit a record low, with both housing prices and mortgage rates doubling post-pandemic, while wages have not kept pace. The median new home price in Springfield stands at approximately $417,500, making it unaffordable for over 84% of local households. For every $1,000 increase in housing prices, an additional 161 households are pushed out of the market.

The low turnover rate of homes further complicates this situation. Homeowners are staying in their houses longer due to historically low mortgage rates, with the average home turnover increasing from every seven years to every 14 years. Although the Federal Reserve has announced rate cuts, much larger actions may be necessary to positively influence the housing market.

Another obstacle is Springfield’s lack of available land for development. Many potential buyers are eager to purchase but cannot find suitable lots. New developments often spring up on the outskirts of city limits, where they face regulatory challenges and pushback from neighboring residents. To combat these hurdles, Springfield is currently updating its development code to streamline processes and encourage diverse housing construction. This new code is set to undergo testing until 2026, with its long-term effectiveness still uncertain.

Experts believe that addressing the housing issue will likely require enhancing overall housing turnover rather than relying solely on new construction.

FAQ Section

{
“@context”: “https://schema.org”,
“@type”: “FAQPage”,
“mainEntity”: [
{
“@type”: “Question”,
“name”: “What is the current housing situation in Springfield?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Springfield is facing a significant housing shortage, with only 129 permits issued for new residential builds in 2024.”
}
},
{
“@type”: “Question”,
“name”: “How does Springfield’s building permit rate compare to national trends?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Springfield’s building permits for single-family homes have dropped by 13%, which is higher than the national decline of 6% and the state decline of 4%.”
}
},
{
“@type”: “Question”,
“name”: “What factors are contributing to the housing shortage?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “A decreasing workforce in the construction industry and high costs of labor and materials are contributing to the housing shortage.”
}
},
{
“@type”: “Question”,
“name”: “What is the median new home price in Springfield?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The median new home price in Springfield is approximately $417,500, making it unaffordable for over 84% of households in the area.”
}
},
{
“@type”: “Question”,
“name”: “How have homeowner turnover rates changed recently?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The average home turnover has shifted from every seven years to every 14 years due to low mortgage rates.”
}
}
]
}

Deeper Dive: News & Info About This Topic

Additional Resources

• News Leader: Springfield Housing Construction Remains Slow
• Springfield News Sun: Springfield’s Housing Market Hurdles
• MassLive: Springfield Developer to Begin Construction on Home Development
• Wikipedia: Housing Crisis
• Google Search: Springfield Housing Market

Author: Construction TX News

TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.