Decades of chronic underbuilding, aging baby boomers choosing to remain in their homes longer, and a wave of millennials and Gen Z entering their household formation years are all contributing to a nationwide housing shortage — one that’s unlikely to be resolved any time soon.
“We do not expect this will change over the near term,” said Rich Hill, global head of real estate research and strategy at Principal Asset Management, in an interview with IREI.
Hill noted the shortage persists despite a record apartment construction boom that began in 2020. This surge was concentrated in regions with significant population inflows, particularly the Southeast, Southwest and Mountain West. In some cities, however, it created a supply bottleneck where vacancy rose and rent growth slowed in many high-growth markets, added Hill.
Hill pointed to Austin, where more than 20,000 units were absorbed in 2024, according to CoStar. An even larger volume of new deliveries outp
