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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.

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