The NAHB's Eye on Housing says homeowner & rental vacancy rates are one of the key statistics used to judge the health and direction of the housing market. Using 2021 data from the American Community Survey (ACS), they point out that abnormally low vacancy rates signal a greater housing shortage - with U.S. vacancy rates hitting their lowest readings in decades in 2021. They estimate that 1.5 million units are required to close the gap and bring the current vacancy rates back to the long-run equilibrium levels. Indeed...
"...estimates only evaluate shortages of vacant units needed to bring the current vacancy rates back to the normal levels and do not attempt to include the additional housing shortfall due to pent-up housing demand or need to replace the aging stock. Additionally, these estimates measure a different concept than current market inventory, which is rising currently due to declines for housing affordability. That is a cyclical measure which will fall when the Fed normalizes interest rates."
Click here to read the full report at the Eye on Housing.
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