According to a recent report, the United States needs to build 4.3 million new apartments by 2035 to keep pace with growing residential rental needs.
The study -- commissioned by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) and prepared by Hoyt Advisory Services and Eigen10 Advisors – reviewed the anticipated housing demand in the 50 states, and 50 metro areas, including the District of Columbia.
The analysis indicates that the total reported number includes a 600,000-apartment deficit that has been triggered by underbuilding; mainly due to the 2008 financial crisis.
Next, rental price surges -- above $1,000 per month -- have caused the number of affordable units to decline. From 2015 to 2020, the number of apartments that cost less than $1,000 per month decreased by 4.7 million. (Significant rent increases occurred primarily in Miami, Los Angeles, New Orleans, San Diego, Orlando, Florida, and Riverside, California.)
NMHC President and CEO Doug Bibby noted that “the lack of available housing is holding our country back. Whether it is a multifamily residence, duplex or single-family home, we need a massive supply of new for sale and rental homes—including millions of new apartments by 2035.”
NMHC Vice President of Research Caitlin Walter believes it’s possible to meet the goal of building over 4 million new apartment units by 2035. "As long as we overcome impediments like opposition to construction in the areas that need it most, I do think it can happen.”
# # #
Sources: