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.