Housing stock in the US is growing faster than before the pandemic-induced housing frenzy, analysis from real estate marketplace firm Zillow has revealed.
Some 1 million single-family homes were completed in 2023, the second-highest annual total since before the global financial crisis – 11% more than in 2019.
To achieve this pace, builders pivoted toward higher density, building more townhomes as opposed to detached single-family homes.
Construction starts for detached single-family homes declined by nearly 9% from 2022 to 2023, but starts for attached single-family homes rose by more than 3% over the same time span.
Orphe Divounguy, Zillow senior economist, said: “The housing affordability crisis still grips America. It was precipitated by decades of underbuilding, and despite builders’ recent efforts, the unmet need for homes is growing.
“The best long-term solution is more supply. Builders are helping where they can by shifting to more cost-conscious and space-efficient designs.
“But promoting density through local laws is key — that will go a long way to bring in more affordable homes where they’re needed the most.”
Markets that have issued the most single-family permits since 2020 are Houston, Dallas and Phoenix – easing affordability in markets stretched by population growth.
