Inventory is a key contributor to the affordability crisis, and construction is falling behind. The affordable housing crisis in the United States has many causes. A new study, commissioned by apartment industry groups, highlights how low inventory may be a contributing cause for this issue in cities nationwide.
The country needs to construct 4.6 million new apartments by 2030, according to a new study conducted by Hoyt Advisory Services and commissioned by the National Multifamily Housing Council (NMHC) and National Apartment Association (NAA), two nonprofit industry groups. In addition, research found that 51 percent of the current apartment stock was built before 1980, which means roughly 11.7 million additional units may need repairs. The study found that it will take at least 325,000 new apartment every year to meet demand, yet,on average, just 244,000 units were delivered every year from 2012 through 2016. Over the last five years, an average of one million new rental households were formed, a record amount.

We Are Apartments

While the need for additional units impacts cities across the country, demand is expected to be especially high in fast-growing cities including Raleigh, North Carolina (69.1 percent increase forecast), Orlando (56.7 percent), and Austin, (48.7 percent). In addition, large urban areas also need a sizable increase of new units, including the New York City metro area (278,634 additional apartments) Dallas-Ft. Worth, Tex...