In today’s dynamic landscape, demographic shifts and the ongoing influence of the pandemic have brought about significant changes in the United States’ housing needs for multifamily unit construction. A recent study, commissioned by the National Apartment Association (NAA) and the National Multifamily Housing Council (NMHC), reveals that the nation is facing an urgent demand for the construction of 4.3 million new apartments by the year 2035. The study, conducted by Hoyt Advisory Services and Eigen10 Advisors, LLC, provides crucial insights into future apartment demand across all 50 states, 50 metropolitan areas, and the District of Columbia.
Bridging a 600,000 Apartment Home Shortage
The pressing need for 4.3 million apartment homes includes addressing an existing deficit of 600,000 apartment homes. This shortfall is attributed to the aftermath of the 2008 financial crisis, which led to underbuilding.
Affordable Multifamily Unit Construction in Decline
The study also highlights a significant decrease in the number of affordable housing units, defined as those with rents below $1,000 per month. From 2015 to 2020, there was a decline of 4.7 million affordable units, underscoring the challenges in providing housing that’s within reach for many Americans.
Apartment demand projections factor in a 3.8% increase in the homeownership rate. This trend demonstrates the dynamic nature of the housing market, where various factors influence the choices individuals make regarding renting or owning homes.
Immigration plays a vital role in driving apartment demand. However, immigration levels saw a decline before the pandemic and have remained low. A reversal of this trend would significantly impact multifamily unit construction demand, making it crucial to consider these demographic dynamics.
Focus on Texas, Florida, and California
The study identifies Texas, Florida, and California as three states that collectively account for 40% of the future demand for apartments. Together, they are expected to require the construction of 1.5 million new apartments by 2035. These states are crucial hubs for real estate and development.
Building for the Future
At Franklin General Contracting, we understand the evolving landscape of housing needs in the United States. With a growing demand for multifamily units, we are committed to addressing this challenge head-on. Our expertise and experience in construction make us a trusted partner in ensuring that the nation’s housing needs are met.
Browse Our Current Multifamily Projects
To see our commitment to the multifamily construction sector in action, take a look at our ongoing projects. We’re proud to be part of the solution to address the pressing demand for apartments and contribute to the growth and well-being of communities across the nation.
As the demand for multifamily units continues to rise, we stand ready to provide innovative and sustainable solutions to meet the evolving housing needs of our communities. Stay tuned for updates on our projects and our ongoing efforts to address the changing housing landscape.