Study: Housing Crisis is About Affordability, not Supply

New research shows that there is no overall shortage of housing units, but all U.S. metropolitan areas face a severe lack of affordable units for low-income renters.

2 minute read

June 18, 2024, 12:00 PM PDT

By Diana Ionescu @aworkoffiction


A study from the University of Kansas reveals that the United States housing market doesn’t lack supply overall, but suffers from a dearth of affordable units for very low-income households in all of the nation’s markets.

The study “examined U.S. Census Bureau data from 2000 to 2020 to compare the number of households formed to the number of housing units added to determine if there were more households needing homes than units available.” According to the authors, “only four of the nation’s 381 metropolitan areas experienced a housing shortage in the study time frame, as did only 19 of the country’s 526 "micropolitan" areas — those with 10,000-50,000 residents.”

According to the authors, stemming the housing crisis requires that policymakers address low incomes and high housing costs, not just supply. The study found that “from 2000 to 2020, housing production exceeded the growth of households by 3.3 million units. The surplus from 2000 to 2010 more than offset the shortages from 2010 to 2020.” However, almost all metropolitan areas have a shortage of units available to the lowest-income renters.

The study shows that the vacancy rate at the end of 2020 was 9.7 percent, with almost 14 million units available. The authors note that “Of course, there are many factors that determine if a vacant is truly available; namely, if it is physically habitable and how much it costs to purchase or rent the unit.” Professor Kirk McClure adds, “There are also considerations over a family’s needs such as an adequate number of bedrooms or accessibility for individuals with disabilities, but the number of homes needed has not outpaced the number of homes available.”

The authors conclude, “Helping people afford the housing stock that is available would be more cost effective than expanding new home construction in the hope that additional supply would bring prices down.”

Monday, June 17, 2024 in University of Kansas

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Bird's eye view of manufactured home park.

Manufactured Crisis: Losing the Nation’s Largest Source of Unsubsidized Affordable Housing

Manufactured housing communities have long been an affordable housing option for millions of people living in the U.S., but that affordability is disappearing rapidly. How did we get here?

March 25, 2025 - Shelterforce

U-Haul truck on road with blurred grassy roadside in background.

Americans May Be Stuck — But Why?

Americans are moving a lot less than they once did, and that is a problem. While Yoni Applebaum, in his highly-publicized article Stuck, gets the reasons badly wrong, it's still important to ask: why are we moving so much less than before?

March 27, 2025 - Alan Mallach

Rusty abandoned oil well and equipment with prickly pear cactus next to it in West Texas.

Using Old Oil and Gas Wells for Green Energy Storage

Penn State researchers have found that repurposing abandoned oil and gas wells for geothermal-assisted compressed-air energy storage can boost efficiency, reduce environmental risks, and support clean energy and job transitions.

March 31, 2025 - Pennsylvania State University

Colorful blocky apartment building facade.

Minneapolis Bans Rent-Setting Software

Four cities have enacted restrictions on algorithmic software that can inflate rent costs.

April 1 - Stateline

Silver electric BMW car parked in driveway of home in Oakland, California.

Oakland to Add 244 New EV Chargers

Oakland plans to launch its new charging network at eight locations by the end of 2025.

April 1 - City of Oakland

Sculpture of seated Jane Goodall holding hands with chimp on green lawn.

Jane Goodall Inspires with Message of Hope, Resilience, and Environmental Action

Speaking in Pasadena, Jane Goodall offered a hopeful and inspirational message, urging global compassion, environmental responsibility, and the power of individual action to shape a better future.

April 1 - Pasadena Star-News