Home Completions Surge in 2024

In 2024, the U.S. witnessed significant growth in home completions, reaching a total of 1.6 million—marking the highest level of activity in almost two decades. This growth was buoyed by a rise in both single-family and multifamily construction projects. Notably, for the first time since 2016, new construction activities exceeded the rate of household formations.

Supply Shortfall Remains a Challenge

Despite this development, a substantial shortfall of 3.8 million homes persists, representing the third-largest deficit recorded since 2012, trailing only the figures from 2020 and 2023. At the current construction pace, it will take approximately 7.5 years to bridge this gap, with significant regional disparities:

• **South**: Expected to recover in about 3 years, despite needing 1.15 million additional units.
• **West**: Anticipated recovery in 6.5 years, with a 13.4% reduction in its housing gap.
• **Midwest**: Recovery is projected to take a staggering 41 years, with a minimal reduction of 2.4% in its deficit.
• **Northeast**: Notably, the gap widened by 1.2% in 2024, requiring 1.04 million more units.

Construction Highlights

Although the year saw nearly 1.36 million housing starts outpacing household formations by almost 400,000, total housing starts remained at their lowest since 2020. This decline primarily stemmed from a downturn in multifamily construction, which fell to the lowest point since 2017.

“In the early part of the 2010s, we did see an elevated share of multifamily building,” said Hale. “We’ve now gone back to a level that is closer to 25% of what’s being built is multifamily, and the other 75% is single-family.”

The rise in housing costs has motivated many young Americans, particularly millennials and Gen Z, to defer homeownership, leading to an estimated 1.63 million “pent-up” households that did not form in 2024.

“As we drill in and look at the homeownership rate for those under 35 and for those 35 to 44, those homeownership rates have dropped,” Hale explained.

Call for Policy Changes

Addressing the housing crisis necessitates significant policy reforms within the homebuilding sector. In response, Realtor.com has launched the “Let America Build” campaign, which advocates for measures aimed at expanding housing supply. This initiative emphasizes the need to eliminate bureaucratic obstacles, revise restrictive zoning laws, and amend outdated regulations impeding home construction.

“America’s housing shortage is holding back economic growth, driving up costs, and making it harder for millions of families to find a home,” stated Damian Eales, CEO of Realtor.com. He added, “Through Let America Build, we’re rallying the right voices to push for real solutions that will unlock supply and make homeownership more attainable. That’s a win for families, communities, and the entire economy — because when housing works, everything works.”