America Has a Shortfall of 6.5 Million Single-Family Homes Thanks to Decade of Under-Building
A new report from Realtor.com says a decade of under-building in America has led to a shortfall of 6.5 million single-family homes in the U.S. To come up with their conclusions, Realtor.com looked at household formation, housing starts, and home sales. They found that given how many households were formed between 2012 and 2022 the U.S. is short of 6.5 million single-family homes. In addition, they say that builders moved into the apartment building sector, versus building single-family homes.
“Cooling buyer demand and builder confidence led to slower single-family construction and a shift in builder focus to multi-family last year. While that brings greater supply to the market, most of it will be used for rentals and won’t address ongoing affordability challenges in the for-sale space,” Said Hannah Jones, an economic analyst at Realtor.com.
Article by Brad Beckett, Director of Education & Outreach, Real Estate Investing Today, National Real Estate Investors Association (NREIA).