03/15/2025
The housing shortage varies across the country. The South has the biggest gap in total numbers, with 1.15 million missing homes, but it’s also making the most progress in catching up. The Northeast has the biggest shortage when compared to how many homes are typically built there. The Midwest and West are also facing challenges, with the Midwest struggling the most.
At the current pace, it could take about 7.5 years to close the national housing gap. Regionally, the South is on track to close its gap in just 3 years, while the West may need about 6.5 years. The Midwest could take a staggering 41 years to catch up, and the Northeast isn’t expected to make much progress without major changes.
In 2024, more new homes were built than new households were formed — the first time this has happened since 2016. While this is a step in the right direction, the country is still short about 3.8 million homes.
Homebuilding picked up significantly, reaching its highest level in nearly 20 years. Even with this progress, about 1.6 million Gen Z and millennial households that were expected to form in 2024 didn’t happen. Many young adults delayed moving out or buying homes, often because of high costs and a lack of affordable options.
This shortage has been building for over a decade. Since 2012, home prices have steadily climbed because there simply haven’t been enough homes to meet demand — a trend that continues to impact today’s market.
🏘️ America is missing nearly 4 million homes. Learn more about solving the housing crisis: https://rltor.cm/r93xdg
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