US housing shortage rose to 4.5M homes in 2022: Zillow
"There are not enough homes in this country, and that's pushing homeownership out of reach for too many families."
Story at a glance
- The U.S. housing shortage rose to 4.5 million homes from 2021 to 2022, a new analysis shows.
- This despite a construction boom during the pandemic.
- "The simple fact is there are not enough homes in this country, and that's pushing homeownership out of reach for too many families," said Orphe Divounguy, a senior economist at Zillow.
(NewsNation) — The U.S. housing shortage rose to 4.5 million homes from 2021 to 2022, according to a new analysis by Zillow.
The deepening housing deficit went up from 4.3 million homes in 2021 despite a construction boom during the COVID-19 pandemic.
"The simple fact is there are not enough homes in this country, and that's pushing homeownership out of reach for too many families," said Orphe Divounguy, a senior economist at Zillow.
"The affordability crisis extends to renters as well, with nearly half of renter households being cost-burdened. Filling the housing shortage is the long-term answer to making housing more affordable. We are in a big hole, and it is going to take more than the status quo to dig ourselves out of it," Divounguy added.
The Zillow analysis found that Orlando and New Orleans saw the biggest increases in housing shortages in 2022, with 40.2% and 39.6% increases, respectively.
According to the U.S. Census Bureau, roughly 1.45 million homes were completed in 2023. The increase over 2022 is a sign of progress, but much more needs to be done.
According to the Zillow analysis, reforming zoning rules to allow for more density is key for more homes to be built. Experts overwhelmingly agree that relaxing zoning laws is one of the best ways to improve affordability, and these types of measures have broad support among homeowners and renters.