“Housing starts picked up in May. The trend since the onset of the pandemic has been notably higher single-family homebuilding and subdued multifamily construction. That tilt is a proper response, given the limited single-family home inventory and what had been deceleration in apartment rent growth.
Despite the month-to-month trend, or even year-to-year changes, America is facing a massive housing shortage due to multiple years of underproduction in relation to population growth. We estimate around 5.5 to 6.8 million additional housing units need to be built. America is on track for only 1.6 million and 1.7 million new housing units this year and next, respectively. That would represent the best two-year performance in 15 years, yet it would still be inadequate. Therefore, expect both rents and home prices to outpace overall consumer price inflation in the upcoming years.”