U.S. Has 14.5 Million Vacant Homes Alongside 7-10 Million Unit Shortage Estimate

The U.S. faces a housing shortage estimated at 7 to 10 million units, according to Newsweek. A recent report by White House economists said the nation would need 10 million additional units to close the gap between supply and demand and restore affordability.

Roughly 1 in 10 U.S. homes, or 14.5 million properties, are currently vacant, Newsweek reported, citing LendingTree analysis of Census Bureau data. Of those, 4.7 million serve seasonal or recreational use, 2.6 million are available to rent, and fewer than 800,000 are listed for sale.

The national vacancy rate stands at 10.1 percent. Maine recorded the highest state vacancy rate at 20.6 percent with 154,717 vacant homes, followed by Vermont at 19. In Vermont, 75.8 percent of vacant homes are seasonal or recreational properties.

Connecticut posted the lowest rate at 7 percent with 107,815 vacant homes. Florida holds about 1.5 million vacant units despite a 14.7 percent rate, while California and Texas each have roughly 1.1 million vacant homes. The District of Columbia leads in the share of vacant homes available for rent at 39.4 percent.

Matt Schulz, LendingTree’s chief consumer finance analyst, said a healthy vacancy level gives buyers and renters more options and reduces competition. He added that the key question is how many homes are available for purchase or rent rather than how many sit vacant overall. Schulz noted that seasonal or recreational properties do not typically help local families seeking year-round housing.

A study by the National Multifamily Housing Council and NYU Urban Lab found that the affordable housing gap would take over a century to close at the current construction pace in 38 of the country’s 51 largest metropolitan areas.