Zillow (Z) stock is soaring during intraday trading on Wednesday, with shares climbing 5.01% as investors react to the company's latest report on the US housing market. The real estate marketplace's findings have highlighted a critical issue that could have far-reaching implications for the housing sector and Zillow's business prospects.

According to Zillow's report, the US housing shortage has reached an all-time high of 4.7 million units. This deepening deficit is identified as the primary driver of the nation's ongoing housing affordability crisis. Despite a construction boom in response to high demand and price growth during the early years of the pandemic, the supply has failed to keep pace with the growing population, let alone address nearly two decades of underbuilding.

The report's findings are likely driving investor optimism towards Zillow, as the company stands to benefit from increased activity in a tight housing market. With 8.1 million families sharing homes with unrelated individuals, potentially due to lack of affordable options, Zillow's platforms for home search, rental listings, and market analysis could see increased usage. Moreover, the persistent shortage suggests sustained demand for Zillow's services in the foreseeable future, as both buyers and sellers navigate this challenging market landscape.