Housing Starts Over Time
NO. 02 | CHART FOR THOUGHT
- The U.S. suffers from a severe housing shortage. Freddie Mac estimates that 2.5 million additional housing units will be needed to make up this shortage.
- The housing market has been struggling to keep up with demand since the GFC, when the number of new homes built was slashed in half compared with the previous decade. Yet, every year the number of U.S. households grows by more than 1 million.
- With mortgage rates dropping by over 230 bps since January 2010 and more Millennials entering the housing market, residential starts are now back to historical averages in 2020.
- The last time residential starts surpassed 1.3 million was back in 2007. If construction continues at this pace, it could ease pressure on the housing shortage.