U.S. needs 4.3m more apartments by 2035 to address demand, deficit and affordability

Amidst demographic shifts and lingering pandemic impacts on the population and broader economy, the U.S. faces a pressing need to build 4.3 million new apartments by 2035, according to a new study commissioned by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA).

Key findings:

Shortage of 600,000 apartment homes. The 4.3 million apartment homes needed includes an existing 600,000 apartment home deficit because of underbuilding due in large part to the 2008 financial crisis. Loss of affordable units. The number of affordable units (those with rents less than $1,000 per month) declined by 4.7 million from 2015 to 2020. Homeownership. Apartment demand also factors in a projected 3.8 percent increase in the homeownership rate. Immigration. Immigration is a significant driver of apartment demand, and levels tapered