US Housing Boom May Ease Shortage, But Costs Remain High
Since 2020, the United States has added nearly 5 million housing units, primarily in the South and mostly consisting of single-family homes, making the housing shortage appear manageable in much of the country.
However, experts emphasize that even more homes, particularly single-family units, are needed. Additionally, ongoing high interest rates are adversely affecting potential homebuyers.
According to Stateline, almost half of the housing increase from April 2020 to July 2023 came in six states: Texas, Florida, California, North Carolina, Georgia and Tennessee, according to a Stateline analysis of U.S. Census Bureau estimates to be released Thursday. That mirrors America’s post-pandemic moving patterns to plentiful suburban housing in Texas and Florida, but also California’s persistent push for more apartments in resistant areas across the state.
Housing experts caution that the supply has still not caught up with demand even after another good year for home construction in 2023. Last year produced the most housing units since 2007. “One Good Year Does Not Solve America’s Housing Shortage” was the title of a Moody’s Analytics report in January, which found single-family homes in particular remain in short supply.
Moody’s estimated a shortfall of about 1.2 million single-family homes and 800,000 other units, noting that home sales had slowed since reaching all-time-high prices in 2022 as interest rates climbed and made purchases even more unaffordable.