🏗️ Six Major Metros Are Building More Housing—But Only for the Rich
A new study from Georgetown University’s Center on Poverty and Inequality just dropped, and it confirms what many of us have suspected: We’re building more housing in some markets, but we’re building the WRONG kind of housing.
The Six Metros:
Houston, Dallas, Phoenix, Atlanta, Seattle, and Washington DC all beat national averages for homebuilding. From 2010 to 2023, these metros added between 12.7% and 22.4% new housing to their overall inventory, compared to just 11.35% nationally.
On paper, that sounds like progress. But dig into the data, and a different story emerges.
New Homes Are Getting BIGGER:
In the 1980s, 33% of homes had four or more bedrooms. Today, 59% of new construction has that many. Meanwhile, starter homes—the smaller, more affordable options that first-time buyers depend on—are disappearing.
Only 4% of newly built owner-occupied units are duplexes, triplexes, or other “missing middle” housing types. The rest? Large, expensive single-family homes or tiny apartments in large multifamily buildings priced for high-income earners.
Who’s Living in the New Housing?
55% of the newest housing stock is occupied by moderate-, middle-, and high-income renters. Compare that to housing built before 1971, where only 37% of occupants are high-income.
The rental market is concentrated in large multifamily buildings with small units, limiting options for families who need space but can’t afford luxury prices.
The Expert Take:
“Just focusing on supply alone won’t reach those who are struggling most,” Lelaine Bigelow, executive director of the Georgetown Center on Poverty and Inequality, told Realtor.com. “The private sector isn’t meeting the needs for lower-income households, and probably not the middle class, either.”
Bigelow argues that market forces alone won’t solve the housing crisis. We need public investment, zoning reform, financial tools, and inclusionary practices to expand the housing stock, especially the “missing middle” that makes homeownership attainable for moderate and low-income buyers.
A Glimmer of Hope?
There may be a shift happening. Realtor.com data shows the median new build shrunk from 2,128 square feet in 2022 to 1,965 square feet in 2024. It’s a small change, but it suggests builders may be starting to respond to demand for smaller, more affordable homes.
My Take:
This is exactly what I’ve been writing about in my upcoming book chapter on the supply shortage. If you’ve been following my posts on zoning reform, tax policy, and institutional investors, this is where it all connects.
Building more housing is necessary, but it’s not sufficient. We need the RIGHT kind of housing in the RIGHT places at the RIGHT price points. Otherwise, we’re just building more inventory that most people can’t afford.
I’m breaking down all of this data and more in my book. Want early access to the chapters as I finish them? DM me and I’ll add you to the list.
What do you think? Are we building the right kind of housing in Southeast Idaho, or are we falling into the same trap?
#RealEstate #HousingCrisis #Affordability #SupplyShortage #SEIdaho
