A new report is raising serious questions about the government's latest plan to fix the housing crisis.

According to UBS, the strategy relies heavily on deregulation.

But analysts say it may be dead on arrival.

I'm Kathy Fedke, and this is real estate news for investors.

This is Real Estate News with Kathy Fedke.

There's a growing debate right now about how to fix the housing shortage and whether the government's latest plan will actually work.

A new analysis from UBS says the government's strategy, which leans heavily on deregulation, is well-intentioned, but likely not enough

to move the needle in the near term.

Let's start with the scale of the problem.

The White House says the U.S. is short about 10 million homes.

That's a massive supply gap, and it's one of the main reasons affordability remains so

strained today. The White House believes the

solution is to build more and build faster. Their argument is that regulation is adding over

$100,000 to the cost of a new home. So if you remove those barriers, supply should increase, and

prices should come down. To support that idea, they point to Texas.

In the early 2000, cities like Austin and Dallas made it easier to build.

That helped keep housing relatively affordable, even as populations surged.

But here's where the story gets more complex.

Data and analysis from Resi Club shows that the same flexibility that boosts

supply can also increase volatility. In fact, those Texas markets became some of the most

overheated in the country during the pandemic boom. At one point, Austin was considered overvalued

by more than 40 percent, and Dallas by more than 30%.

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