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Commissioned by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA), Hoyt Advisory Services and Eigen10 Advisors conducted research on apartment demand throughout the nation. As rental needs grow due to shortages and affordability, the industry is pressed to build 4.3 million new apartments by 2035.

“The U.S. has undergone tremendously difficult conditions that have fundamentally altered our nation’s demographics, but one thing remains certain—there is a need and demand for more rental housing,” says NAA president and CEO Bob Pinnegar. “Put simply, we do not have enough housing. The U.S. must build 3.7 million new apartments just to meet future demand, on top of a 600,000-unit deficit and loss of 4.7 million affordable apartment homes. It is time to reverse course after decades of underbuilding, and instead pursue responsible and sustainable policies that will not only meet this demand but address the missing middle and loss of affordable housing stock.”

The study’s data reveals that to keep up with the demand, new development approaches, fewer restrictions, and more incentives will be needed to build the necessary 266,000 new apartments each year. Findings include estimated demands for each state and 50 metro areas. From 2015 to 2020, the number of affordable units—rents less than $1,000 per month—declined by 4.7 million.

A major driver of the apartment demand is immigration. While levels slowed before the pandemic and have remained low, a reversal of such would increase demand significantly. California, Florida, and Texas will require 1.5 million new apartments by 2035, accounting for 40% of future demand.

“The lack of available housing is holding our country back. Whether it is a multifamily residence, duplex, or single-family home, we need a massive supply of new for-sale and rental homes—including millions of new apartments by 2035,” says NMHC president and CEO Doug Bibby. “Making sure everyone has access to quality, affordable housing is a bipartisan issue, and the industry stands ready to do its part to help create the 4.3 million new apartment homes our country needs.”

In conjunction with the study, shares the data by each state and 50 key metro areas.