eric1513/Getty ImagesA shortage of 2.2 million homes suggest the US housing market will remain unaffordable.High labor costs, increased environmental regulations, and elevated land prices have hindered new developments.An influx of immigrants in the country also isn't helping the housing affordability equation as it has in the past. The American dream of owning a home is fading for millions of Americans due to lingering affordability issues and the country needs a massive influx of new home construction to make the homeownership attainable again, according to Ned Davis Research."Years of rising house prices, modest income growth, and high mortgage rates have made housing unaffordable for large swaths of Americans," NDR strategist Joseph Kalish and economist Veneta Dimitrova said a note on Wednesday.The 30-year fixed mortgage rate has been hovering around 7% the past year, surging to 8% briefly at the end of 2024 before dipping again.The research firm said a shortage of 2.2 million homes is compounding the US housing market's affordability issues.The lack of supply was driven by a long period of underbuilding in the aftermath of the 2008 US housing crash."Since 2015, we have been warning about a chronic housing shortage, leading to a supply/demand imbalance.