5 Reasons Why There Isn’t A Housing Shortage

The United States is experiencing declining population growth, with fewer than one million people added in 2021, a slower rate compared to historical events like the Spanish flu pandemic and World War 1. Single-family home permits have plummeted since 2005, dropping by 70% to 400k in 2010. Even in 2020, permits remained low at 1 million. However, analyzing the population growth to new housing permits ratio reveals a concerning trend. The ratio, which ideally should be around 1.5, dipped below this threshold in the mid-2000s and again in 2020, indicating a potential oversupply rather than a shortage.