The underproduction situation in the U.S. housing market is getting worse, according to new research
The alarm is being raised about the nation’s underproduction of homes by the nonprofit organization Up For Growth, which is dedicated to resolving the housing problem in the United States.
The group published research on Thursday that found that between 2012 and 2019, the number of dwellings in the United States fell from 1.65 million to 3.8 million, more than doubling.
In 2012, the Southwest and the coasts seemed to have the majority of the country’s affordability issues. But as of 2019, Up for Growth has determined that there is a housing shortage in a total of 47 states and the District of Columbia.
With a deficit of 980,000 houses, California had the largest housing shortage, followed by Texas with 322,000, Florida with 289,000, and New York with 234,000.
Washington, New Jersey, Colorado, Arizona, Illinois, Georgia, Massachusetts, Virginia, Minnesota, Oregon, and Utah were among the other states having a significant housing shortage in 2019. Since 2012, six more states have been added to the list of states with low production: Mississippi, Missouri, Nevada, Oklahoma, Rhode Island, and South Carolina.
169 metropolitan regions had housing underproduction in 2019, up from 100 in 2012. In 230 cities, the deficit worsened in 2019 compared to 2012.
Los Angeles, New York, Miami, Riverside (California), Washington, D.C., Chicago, San Francisco, Phoenix, Atlanta, and Philadelphia were the metro areas with the worst housing underproduction in 2019.
Since 2012, just 25 metro areas have shown an improvement in underproduction or a declining housing shortfall.
Up For Growth has urged the adoption of its Better Foundation framework, which aims to build more houses in locations with strong economic mobility, access to employment, and existing infrastructure, in order to assist address the housing problem.
According to Up for Growth, 3.8 million extra houses constructed on the Better Foundation model may save American households $117 billion, or an average of $3,000 annually, after 20 years.
The strategy is projected to increase the country’s gross domestic product by $209 billion after 30 years of production, as well as personal income by $111 billion, local governments’ net revenue by $7 billion, and federal revenue by $4.4 billion.
The most pressing economic, environmental, and social equality crises facing America require immediate action, according to Up for Growth CEO Mike Kingsella.
According to Realtor.com, the active home inventory increased by 28% for the week ending July 9 compared to the same period last year. The change occurs as fresh postings that have been posted online for many weeks have increased inventory levels by over a third from a year ago.
According to Realtor.com Senior Economist George Raitu, “Real estate markets remain undersupplied compared with 2019, but they are trending in the right way.”
The median listing price increased by 15.9% over the prior year, maintaining a 30-week streak of weekly gains in double digits. Listing price growth, however, is declining and is currently moving slower than it did in late May and early June.
According to Realtor.com, home price growth will continue to slow in the ensuing weeks and in the second half of 2022.