Ohio Among States Seeing Housing Shortage Relief Through New Construction
New Census data shows Ohio and most states have built enough housing since 2020 to outpace population growth, driving down rents and improving affordability.
COLUMBUS, OHIO — Housing shortages have eased across most states since 2020, with new construction making apartments and houses more affordable as supply increases outpace population growth in much of the country.
According to a Stateline analysis of housing data released Thursday by the U.S. Census Bureau, only three states have lost housing units per capita since 2020: Connecticut, New Jersey, and Rhode Island. Most other states, including Ohio, have built enough housing to account for population growth.
Rental and Home Prices Declining
The surge in apartment construction helped drive down the nation’s median rent in April by 1.7% compared with the same month last year, according to a May report from Apartment List, a company that posts rental listings online.
Single-family homes also are becoming more affordable, according to a May report from the National Association of Realtors. The organization determines affordability by calculating whether a typical family earns enough income to qualify for a mortgage on a median-priced, existing single-family home.
Regional Differences in Housing Supply
The improvement in affordability shows the most dramatic gains in the South and Midwest, while affordability is lagging but improving in the West and Northeast.
Housing analysts consider one housing unit for every 2.5 residents a healthy balance, though the ratio can be lower in places with large families or higher where there are many young singles or older people living alone.
Nationwide, the ratio ranges from 1.8 people per unit in Maine to 2.7 people per unit in Utah, according to the Stateline analysis. In most places, the ratio of people to housing units is shrinking as the housing supply grows.
States Leading in Housing Development
Some states have added far more housing than residents since 2020. Vermont has added nearly 10 times as many housing units — around 12,000 — as new residents. The District of Columbia and New Mexico have added five times as many new units as new residents.
The situation differs in Connecticut, New Jersey, and Rhode Island, where the housing supply is lagging behind population growth, creating continued pressure on housing costs in those northeastern states.
The data reflects a broader trend of increased construction activity nationwide as developers respond to demand and local governments work to address housing affordability concerns that peaked during the pandemic.
