THE STATE OF THE NATION’S HOUSING 2023JOINT CENTER FOR HOUSING STUDIES OF HARVARD UNIVERSITYPrincipal funding for this report was provided by the Policy Advisory Board of the Joint Center for Housing Studies. Additional support was provided by:Federal Home Loan Banks Habitat for Humanity International Housing Assistance Council MBA’s Research Institute for Housing AmericaNational Apartment Association National Association of Home Builders National Association of Housing and Redevelopment Officials National Association of REALTORS® National Council of State Housing Agencies National Housing Conference National Housing Endowment National League of Cities National Low Income Housing Coalition National Multifamily Housing Council NeighborWorks America ©2023 by the President and Fellows of Harvard College.The opinions expressed in The State of the Nation’s Housing 2023 do not necessarily represent the views of Harvard University or the Policy Advisory Board of the Joint Center for Housing Studies.0TABLE OF CONTENTS1. Executive Summary ............................................................. 12. Housing Markets .................................................................103. Demographic Drivers ......................................................184. Homeownership .............................................................. 255. Rental Housing ................................................................... 326. Housing Challenges ........................................................397. Addtional Resources .......................................................47ONLINE TABLES AND EXHIBITS www.jchs.harvard.eduTHE STATE OF THE NATION’S HOUSING 2023 Joint Center for Housing Studies of Harvard UniversityHarvard Graduate School of Design | Harvard Kennedy School01Housing markets continue to cool even as homeowners and renters face higher costs. On the for-sale side, home sales and construction levels are declining, as is the pace of home price appreciation, while rental markets are experiencing sharply reduced rent growth and rising vacancy rates. Nevertheless, home prices and rents remain elevated from pre-pandemic levels. Millions of households are now priced out of homeownership, grappling with housing cost burdens, or lacking shelter altogether, including a disproportionate share of people of color, increasing the need for policies to address the national housing shortfall at the root of the affordability crisis. Likewise, there is growing urgency for public and private investment to address longstanding disinvestment in underserved communities of color, adapt the housing stock to increasing risks of climate change, and expand options for older adults to age safely in their communities.Housing Markets Cool RapidlyIn both the for-sale and rental markets, housing demand softened and markets cooled by early 2023 in response to rising interest rates and deteri-orating affordability. In the for-sale mark...
