These 10 Metro Areas Have Highest Housing Shortages Relative To Job Growth

The booming job market in some of the nation’s largest metropolitan areas has resulted in a surging demand for housing that’s outpacing the construction of new residences, according to a recent analysis by PortlandRealEstate.com.

At 31.4, New York City has the highest job-growth-to-building permit ratio. The robust job market is forcing housing costs higher as people move to the city, making it more difficult for residents to find affordable housing. The average job growth-to-building permits ratio for cities nationwide was 7.64.

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Using data from the National Association of Realtors, U.S. Census Bureau and the Bureau of Labor Statistics, PortlandRealEstate.com examined new job openings per one building permit to determine the housing shortages in metropolitan areas in 2022.

“The analysis reveals a concerning trend of housing shortages in the largest metropolitan areas across the United States,” a spokesperson for PortlandRealEstate.com said. “The ratio of new job openings per one building permit highlights the significant gap between job growth and housing construction.”

Hotspots For Housing Shortages

“Metros with growing job opportunities naturally have higher housing shortages than other metros,” the spokesperson said. “New York and San Francisco are the metros with the most acute housing need in the United States, with both having four times the average job growth-to-building permits ratio.”

It’s not just job growth affecting the housing market in U.S. metropolitan areas. Under-building relative to population growth also is a culprit, resulting in a shortage of 6.5 million homes under construction relative to household formation, according to a Realtor.com analysis. Between 2012 and 2022, 15.6 million households were formed, but only 13.3 million housing units were started and 11.9 million were completed.

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