US Housing Demand Intensifies Amid Record Rise in Single-Person Households

The United States is experiencing an unprecedented shift in household composition, with a significant increase in single-person households contributing to the nation's persistent housing shortage. This demographic trend, highlighted by a recent discussion at a Community Associations Institute (CAI) luncheon in Arizona, suggests a fundamental change in housing demand that exacerbates existing supply challenges.

Jeff Fleetham, a participant at the CAI event, articulated this point, stating, > "In America today, there are more single heads of household than ever before in history. Each needing housing. Which in fact doubles the housing requirements for a typical family…" This observation underscores how the same population size can require substantially more housing units due to a greater number of individual households.

Data from the Harvard Joint Center for Housing Studies (JCHS) supports this trend, projecting that single-person households and married couples without children will account for 71% of all household growth between 2025 and 2035. This growth is predominantly driven by individuals aged 65 and over. The JCHS report indicates that single-person households are expected to increase by 3.7 million to reach 41.4 million by 2035, while households headed by someone aged 80 or over are projected to grow by 57% in the next decade.

The broader housing crisis is also influenced by generational dynamics. Fleetham noted that "young people have been told that they can live in the neighborhoods they grew up in when in fact, those of us 'boomers' that get blamed for it had to move to the outskirts when we first bought affordable homes…" This highlights a perceived disconnect between younger generations' housing expectations and the realities of affordability, often requiring relocation to more accessible areas.

Experts attribute the overall housing shortage to various factors, including a significant under-building of new homes over the past decade. Estimates for the current housing deficit range from 1 million to 6.8 million units. While household growth is projected to slow in the coming decades, the increasing number of smaller households, coupled with the need to replace aging housing stock, will continue to place pressure on the market. Addressing this complex issue will require innovative solutions in urban planning and construction to meet the evolving demands of a changing demographic landscape.