The U.S. needs 6.5M more homes, according to a Realtor.com report 

 

A recent Realtor.com report revealed that the gap between single-family home constructions and household formations increased to 6.5 million homes between 2012 and 2022. 

The ratio of new household formation to housing starts was 0.75 last year. 

  • The report did not consider multi-family construction. When that is considered, the gap reduces to 2.3 million homes. 
  • From 2012 to 2022, 13.1 million housing units were started, and 11.9 million were completed, of which 8.5 million were single-family units while 3.4 million were multi-family units. 
  • At the end of last year, 35.1% of all housing starts were multi-family starts, the highest since 2015. 
  • The report suggests increasing the supply of single-family and multi-family housing would help bridge the gap and drive down both prices and rents.  

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