No labor. No materials. Rising costs and more regulations. The lack of housing grows.
- 5 million more housing units needed to pace demand
- 5 million of these are multifamily units
Housing production fell as demand rose. Regulations rose to the point that economists say they impacted GDP growth
It will take a decade of record construction to overcome the shortage of the nation’s housing:
- (1968-2000) 1.5 million housing units/annual
- (2001-2020) 1.3 million housing units/annual
- (2021-2031) 2.5 million housing units/annually needed to make up for the shortfall
Total factor productivity
Housing growth is unique in that it contributes directly to national GDP with low cost to the government.
Lumber prices are falling
But low supplies continue to plague project construction
The 80s called. They want their regulations back.
If just California and New York rolled land-use restrictions back to what they were in the 1980s, it would increase national productivity (10%)
National median rent $1,527
(May) up in 43 of the 50 largest metros—up 7.5% nationwide Riverside, Calif. saw the fastest rise in rents nationally, reaching $2,020, in May, up 19.2% y/y
rents in tech cities bottomed out. In May 2021, these same cities hit the highest rent rates in 9 months.