#United States #Philadelphia #PolicyMap #Housing Shortage #Moody's Analytics

Unveiling the Hidden Housing Shortage in U.S. Neighborhoods

In a significant revelation for cities across the United States, a comprehensive new report titled Bringing the Housing Shortage Into Sharper Focus, published by PolicyMap in collaboration with Moody's Analytics, Reinvestment Fund, and Urban Institute, has identified a staggering shortfall of approximately two million homes nationwide. This groundbreaking analysis delves into housing supply and demand at the neighborhood level, moving beyond general estimates to uncover the hidden reality of the U.S. housing landscape.

The findings highlight a crucial disparity: while affluent areas often boast an abundance of available rental units, moderate and middle-income neighborhoods are grappling with severe shortages. The report's analysis draws from census tract data gathered from nearly 350 cities with populations exceeding 100,000, providing an unprecedented look at the intricate dynamics of housing availability.

The Nuances of Local Housing Markets

Maggie McCullough, the CEO and founder of PolicyMap, emphasizes the importance of granular data in addressing housing needs. "This information allows us not just to quantify the deficit but to understand where it's most acute, whether in rental or ownership markets, and which demographics are most impacted," she stated. This neighborhood-level perspective is vital for policymakers aiming for targeted solutions rather than broad strokes that may overlook specific local challenges.

The report sheds light on several key findings:
1. Moderate to Middle-Income Rental Markets Hit Hard: The most significant shortages occur in areas defined as "workforce rental" housing, illustrating a critical imbalance that affects a large segment of the population or nearly two million households.
2. Wealthy Areas Have Surplus Rental Units: Paradoxically, many high-income neighborhoods are characterized by rental oversupply, highlighting a systemic disconnect in housing allocation that fails to meet real demand.
3. Ownership Markets Show Greater Balance: Generally, the homeownership landscape appears more balanced, although disparities persist, particularly in high-income and lower-income neighborhoods.
4. Focus on Rental Housing: Nationally, the shortage of rental units drives the overall deficiency, suggesting that efforts to solve housing problems should prioritize increasing rental stock.
5. Hidden Imbalances at the Neighborhood Level: Cities that may appear well-balanced on a metropolitan scale often harbor significant neighborhood-level discrepancies obscured by aggregate data.

Cristian deRitis, deputy chief economist at Moody's Analytics, reiterated the necessity of understanding these local dynamics, stating, "This analysis underscores that housing affordability cannot be tackled by simply increasing the number of units in locations that do not align with actual demand. A localized approach exposes mismatches that distort the overall housing market."

A Dynamic Tool for Policymakers

One of the standout features of this report is its ability to adapt and evolve over time. Built on reliable, annually updated data from the American Community Survey (ACS), community stakeholders will be able to track and respond to changing housing gaps dynamically. According to McCullough, this ongoing analysis is designed to be actionable, allowing communities to use the insights gleaned from up-to-date data to make informed decisions.

"Our goal is to ensure that this report doesn't simply gather dust,” she emphasized. “With the census tract-level maps available on PolicyMap, users can easily access local housing conditions and develop strategies for action immediately.”

Moreover, the report illustrates why broad national housing policies frequently miss key issues related to local markets. Ira Goldstein from Reinvestment Fund pointed out that traditional estimates often mask underlying sub-markets of housing shortages and oversupply, which limits effective policymaking. "Families have distinct needs regarding price, ownership, and neighborhood, and this data empowers decision-makers to align their initiatives with those realities," he explained.

With the full dataset available on PolicyMap's platform, organizations and agencies can explore housing needs in detail, advocating for informed strategies that address localized demands.

As the housing crisis continues to unfold, nuanced insights like these will be instrumental in shaping a more equitable and responsive policy landscape.