Alright folks, put down that coffee and gather here—because I'm about to drop five straight-up facts about the U.S. housing market that'll make your head spin faster than a real estate agent's commission! No fluff, no jargon, just the cold, hard truth. Think of this as your ‘homework’—except it's actually interesting. So, grab your notebook, or just your curiosity! Trust me, these facts will be more exciting than your last vacation... or at least more informative than the last time you checked your home’s Zestimate on Zillow. Let’s go!

1. 👥👥 1 in 5 Americans who don’t own a home says home ownership is out of reach

Homeownership remains out of reach for many due to rising costs and affordability challenges. Key drivers include slow wage growth, soaring home prices, limited housing inventory, and stricter lending standards, which collectively make saving for a down payment and qualifying for mortgages increasingly difficult. Source: New York Post

2. 🏘️ The United States faces an estimated shortfall of 3.8 million newly constructed housing units

A shortage of newly constructed housing is contributing to housing market pressures. This shortage disproportionately impacts lower-income households, younger buyers, and renters, who struggle the most with limited availability and rising costs. Additionally, regions experiencing rapid population growth, such as the Sun Belt, are particularly affected, exacerbating affordability and accessibility issues in these areas. Source: Up for Growth

3. ⬇️ Home affordability reached an all-time low in 2023

Record Low Home Affordability in 2023. On average, it costs about 25% more per month to own a home than to rent one across the country. This disparity is largely driven by factors such as rising interest rates, higher home prices, and increased maintenance and property tax expenses for homeowners. Source: Redfin

4. 🔄 While rents in large apartment properties dropped during the Great Recession, properties increased rents just one year later

During the Great Recession, rents in large apartment properties saw temporary declines (0.3% in 2008 and 4.1% in 2009), but they rebounded quickly within a year. Source: Harvard Joint Center for Housing Studies

5. 💼 The institutional market share for multi-family apartments in the U.S. stands at approximately 40%.

Institutional investors are often referred to as "smart money". This is because they typically have more resources, expertise, and access to information than you- the individual investor. Institutional investors now own approximately 40% of multifamily apartments in the U.S., a significant market share compared to other countries like Germany, where institutional ownership is 13%. This trend has notable implications for the housing market, including potential upward pressure on rental prices and increased competition for smaller investors, as institutional players leverage their scale and resources to dominate the sector. Source: Savills

Multifamily Investment: A Growing Trend

The increasing role of institutional investors in multifamily housing highlights the sector’s potential for stability and growth. With 40% of multifamily apartments owned by institutions, the U.S. market leads globally in this trend.

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