Dive brief:
- Housing units in U.S. metropolitan areas are expected to increase by 6.6 percent between 2020 and 2025, an increase of nearly 9 million units, according to a recent analysis by the Urban Institute.
- Most of the nation’s housing growth in metro areas since 2020 was concentrated in Texas, where the state’s four largest metros accounted for a combined 13.3% of new housing supply.
- The nation’s three largest metropolitan areas, New York, Los Angeles and Chicago, added housing, but at a “much slower pace,” according to the analysis, with supply growth rates of less than 4 percent.
Diving knowledge:
American cities are scrambling to catch up after a historic slump in homebuilding in the 2010s that helped lead to a national shortage of affordable housing.
Housing development has picked up in the 2020s, but it has been largely disproportionate, expanding primarily in Texas and often concentrated away from existing neighborhoods due to the limited availability of low-cost land, according to the UI analysis. Large metropolitan areas such as New York, Chicago and Los Angeles, however, have added more housing units where people currently live, the report said.
Among the nation’s 20 largest metros, the following 10 added the most housing units between 2020 and 2025.
