Some of the country’s leading enterprises are recognizing what the rental housing industry has long known: Our nation is facing an affordable housing crisis fueled by a lack of adequate housing supply at all price points to meet the growing demand for apartments.
Most recently, Apple joined the ranks of Wells Fargo and Google – titans of the banking and tech industries, respectively – by committing billions of company dollars to combat housing affordability issues experienced by their employees as well as residents throughout their local communities. It’s no coincidence that all three of these powerhouses are headquartered in California, the epicenter of rent control and onerous construction barriers.
Although each company’s plan differs in size and scope, they inherently recognize the need to address housing supply constraints as part of a sustainable solution to housing affordability. As Google CEO Sundar Pichai says, “The lack of new supply, combined with the rising cost of living, has resulted in a severe shortage of affordable housing options for long-time middle- and low-income residents.”
These companies are acknowledging that decades of under-construction have left a massive shortage in overall apartment housing supply – all while demand continues to grow. Renting has become a preferred choice for many Americans amid shifting demographics and prolonged population and employment growth. In fact, the U.S. renter population is at an all-time high, with nearly 39 million Americans (almost 1 in 8) calling apartments home.
To accommodate this rental housing boom, we need to build 328,000 new apartments each year at all price points throughout the country just to meet existing demand – a number that has only been met twice since 1989. We applaud the private sector’s embrace of this issue and their proactive approach to solving America’s affordability crisis. By encouraging innovative solutions to housing demand issues, and bringing attention to this important issue, we can work together to bring relief to America’s housing affordability crisis.