Zillow: National Housing Deficit Reached 4.7 Million in 2023

(Image courtesy of cottonbro studio/pexels.com)

Zillow, Seattle, found that America’s housing deficit grew to nearly 4.7 million homes in 2023, up 159,000 from the previous year.

There were 1.4 million homes added in the U.S. in 2023, but 1.8 million new families formed.

In 2023, only 3.4 million homes were vacant and available for either sale or rent. In, contrast, there were 8.1 million families sharing their homes with unrelated people–many of whom would probably seek out their own home if possible.

In general, the U.S. has failed to build enough homes dating back to the Great Recession, and despite a construction surge during the COVID-19 pandemic, the gap persists.

While the deficit grew by 159,000 homes in 2023, that is an improvement over 2022’s escalation of 257,000 homes. In 2022, 1.3 million new homes were built.

Millennials are the largest chunk of people sharing homes with non-relatives. In 2023, they made up 38% of families living with nonrelatives, with Gen Z at 29%, Gen X at 17% and Baby Boomers at 16%.

By city, the worst housing deficit is in San Jose, Calif., with 19,030 units available and 75,408 families doubling up in shared housing. Next is San Diego, with 26,824 units available and 122,655 families doubling up.

Rounding out the top five are San Francisco, Boston and Los Angeles.