Approximately 4.3 million new apartments will be necessary by 2035 to meet rising demand, according to new research from the National Multifamily Housing Council and National Apartment Association.
The new builds are necessary to address a deficit of 600,000 apartment homes that exist in large part thanks to the 2008 financial crisis, the research found. In addition, the number of affordable units, defined as those with rents less than $1,000 per month, declined by 4.7 million from 2015 to 2020.
NMHC and NAA Apartment note that "apartment demand is growing and the industry needs to keep up…"(but) producing enough new apartments to meet demand requires new development approaches, more incentives and fewer restrictions." Specifically, the US needs to build 266,000 new apartments each year to meet rising demand.
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