FreddieMac’s most recent housing supply analysis estimates that 2.5 million additional housing units are needed to make up the U.S.’s severe housing supply shortage.
But the need for additional housing units varies greatly between states. In fact, while there are currently 29 states that have a housing deficit, 21 states are oversupplied.
And when one considers only the 29 states with a housing deficit, the housing shortage grows from 2.5 million units to 3.3 million units.
Where does Nevada fall? Nevada definitely falls on the “undersupplied states” side of the coin — coming in with a 1.55 percent housing stock deficit as a proportion of the state’s housing stock.
But Nevada’s housing stock deficit is made more acute when interstate migration is taken into account — increasing to a 2.21 percent housing stock deficit as a proportion of the state’s housing stock considering interstate migration flows.
From the analysis, “High housing costs have driven many U.S. citizens and households out of California, driving housing demand higher in their destination states.” And what are California’s “destination states”? Well, Nevada is one of the top ones. [See A closer look at Nevada’s and Washoe County’s inflow population migration]
To see Freddie Mac’s full analysis, see The Housing Supply Shortage: State of the States