A significant issue that often concerns Americans is housing, particularly its affordability. The United States is a big place, and housing costs vary greatly from state to state and region to region. According to Redfin, the median home price in the US in May of this year was $462,206. Washington, DC, had the highest median-priced home ($1,360,000), while West Virginia had the lowest at $253,100. 

While many factors go into housing prices and availability, a common argument is that more homes need to be built (current estimates estimate that we are about two million units short of where we need to be). While this absolutely should help on many fronts, growth in stock is not the only answer. As our chart this week shows, the number of housing units has kept pace with population growth over the past 56 years. While this is a simplistic comparison (it does not factor in the type of unit being built, where, etc.), it does indicate that this is a complex problem that requires a complex approach to the solution.  

Here are the key takeaways from this week’s chart:

• 🏘️Housing Growth Has Outpaced Population Growth: In 1968, the US population was roughly 200.7 million. At that time, there were just under 71 million housing units across the country. Last year, the population was estimated at 341 million, and there were 149 million housing units. In percentages, the population grew by 70%, while housing units grew by 110%.  
• 🏠🏠🏠Single Family Homes Rule: Back in 1968, 65% of the new housing units built were single-family homes. Last year, it was 63%. This rate fluctuates every year and by the decade. In the 70s and 80s, about 65% of new housing was single-family homes (on average). In the 90s and 2000s, that number jumped to 80%. 2024 had the lowest percentage of single-family homes since 1984. 
• ❓❓❓More Density To Come? From 2023 to 2024, the number of single-family units built grew by 2%. The number of 2 to 4-unit dwellings grew by 42% and 5 or more unit dwellings grew by 35%. It is too early to know if this is a pattern, but density is certainly a way to start solving our housing challenges.