Up For Growth recently released its report on 2023 Housing Underproduction in the U.S.. Despite that housing availability increased in the top 25 major metropolitan areas for the first time in nearly a decade, the report’s findings indicate a deepening crisis resulting from a century of exclusionary housing policy and set off nearly a decade ago by major demographic shifts, a historic economic recession, and chronic housing underproduction.
Nationally, underproduction increased by nearly 3% to 3.9 million missing homes. The number of counties across the U.S. experiencing underproduction increased 32%. In 2012, there were 100 major metropolitan areas experiencing housing underproduction, and in 2023 that number had risen to 193 major metropolitan areas. Data revealed that 83% of all markets are worsening. Housing availability increased 0.3% in urban America, but this trend was primarily driven by population loss.
Housing underproduction increased by 4.5% in the suburbs, spurred by high levels of household formation. Due to a sudden and dramatic drop in unit delivery, housing underproduction increased by 47.8% in small towns. Nationally, the suburbs hold a disproportionate 48.7% (1.9 million) of total housing underproduction. For every 100 new suburban households formed in the reporting period, only 67 new homes were delivered.