Do we have a housing shortage? How is that possible if the number of housing units per capita is at an all-time high—which it is?
Kevin Erdmann has a long, complicated post explaining that this is all about families having fewer children, but he never takes this to its logical conclusion. To recap: we don't really care about housing per capita—i.e., housing per individual person. More kids, for example, doesn't mean we need more housing. Instead we want to look at housing units per household. Here it is:
The number of housing units per household is higher than it was in 2001. It still doesn't look like there's a housing shortage.
But wait. This is circular reasoning. If housing is in short supply, it depresses household formation (more kids remain living at home, etc.). But the depressed number of households will then make it look like the housing-per-household ratio is still high.
That sounds complicated, and it's about to get worse. As it happens, the number of adults per household has, in fact, been going up. Is this by choice, or because it's been forced on people by housing shortages? One way to get a handle on this is to look at the housing-per-household ratio, but use the 2001 figure for household size throughout. Here's that:
Even using this measure, the ratio of housing to households is the same as it was in 2001. In other words, even if household size had stayed the same, housing would be about as abundant now as it was two decades ago.
Here's yet another way of looking at this:
Forget households and forget kids. Just look at raw housing per adult. As you can see, it's precisely the same today as it was in 2001.
It was surprisingly hard to get the data for this chart thanks to the Census Bureau's remarkably crappy collection of data about population—the thing that's supposed to be its prime purpose in life. I'd like to do this same chart for California, but it fills me with fatigue just to think about trying to wrestle out of the Census Bureau the adult population of California for the past 20 years. I'm sure it can be done, but God knows how.
If I had this data, I'm pretty sure it would tell us that California has a housing shortage but the rest of the country doesn't. That's what I usually seem to find. For now, aside from California, I continue to believe that the US doesn't really have a housing shortage. Maybe in a few hot cities here and there, but that's about it.