While MultiFamily Dwellings Surged By 54%, Overall Housing Shortage Persists Nationwide; Fixer-Uppers Gain Traction; Exurbs, Suburbs Outpaced Urban Centers In New Inventory Growth: 2024 Year-In-Review

While MultiFamily Dwellings Surged By 54%, Overall Housing Shortage Persists Nationwide; Fixer-Uppers Gain Traction; Exurbs, Suburbs Outpaced Urban Centers In New Inventory Growth: 2024 Year-In-Review

Editor’s note: Staten Islander has previously covered other interesting topics related to real estate, including the trend toward converting retail and industrial space into high-performing storage spaces to allow people who need more space to expand while maintaining apartment-style living.  Staten Island also accounted for more than 3/4 of the single-family housing permits in New York City, making it different from all the other boroughs in a preference for suburban living. It is also possible that some of these trends, particularly those related to a shortage of housing, may have to do with the Dodd-Frank Law enacted after the housing crisis of 2008. 

To celebrate the year’s highlights, we’ve put together a roundup of our Top 5 Reports from 2024, featuring the most exciting real estate trends, backed by exclusive data, interactive visuals, and expert insights.

 Here’s a glimpse of what we covered:

• Multifamily surged by a stunning 54% over the past two decades, yet the overall housing shortage persists, with inventory growing just 16.7%. The laggard was “middle” housing — duplexes, triplexes, and small apartment buildings — which expanded by only 11%, exacerbating affordability challenges.
• Fixer-uppers gain traction amid rising housing costs, offering savings of 29% compared to move-in-ready properties nationwide. In some cities, buyers can save $100,000 or more on a fixer-upper purchase. However, affordability challenges persist, especially in hotspots like California.
• Exurbs and suburbs outpaced urban centers in new inventory growth (15% over the last decade versus a 10% increase in principal cities), reflecting shifting preferences for space and quality of life.
• Industrial real estate dominated as e-commerce surged on the commercial front, with new warehouses and logistics hubs thriving, especially in the Sunbelt. Self storage also soared, with supply up 153% since 1980.
• Adaptive reuse drives self storage expansion as developers transform underutilized urban spaces into vital storage solutions, highlighting sustainable growth strategies in response to rising demand.

We’ve also analyzed state-to-state migration trends, revealing how affordability drives move from high-cost states like California and New York alongside generational preferences. Gen Z is drawn to states with affordable living, substantial career opportunities, and an outdoorsy lifestyle. At the same time, millennials favor large states like Texas, Georgia, and Florida for job growth, no state income tax, and more affordable housing.

You can explore the full roundup and find links to each story here: https://www.storagecafe.com/blog/key-real-estate-trends-2024/

Highlights regarding Housing Inventory in the US, at the article linked above, reveal the following:

East Coast’s PA and NJ lead the nation in middle housing options

While middle housing is a missing puzzle piece for many cities seeking affordable options, some places are already ahead of the curve, showing how this “missing middle” can help ease the housing crunch. Notably, in about half of the 35 U.S. cities where middle housing makes up the majority of the local market, home prices remain below the national average of $340K—making them a win for affordability.

The East Coast leads in middle housing density, with 30 of the top cities located in this region. In Reading, PA, middle housing comprises an impressive 82% of the 2023 housing stock, with homes priced at an average of just $137K. Philadelphia, with a 75% share of middle housing, also stands out; limited space for expansion makes this type of housing a smart solution for the city’s land constraints. Other PA cities like Allentown (61%) and Bethlehem (56%) follow suit, each with home prices staying below $260K.

In nearby New Jersey, eight cities rank high for middle housing inventory, especially those in the New York metro area, providing affordable alternatives for commuters. Camden (77%) and Trenton (73%) are notable exceptions outside this metro area, with average home prices at $103K and $182K, respectively. Other NJ cities in this area average around $400K, still more affordable than comparable properties in NYC.

Here is some New York-specific info from the roundup article above:

Domestic migration in the U.S. fueled by affordability and the desire for a slower-paced lifestyle

Our report in state-to-state migration in the U.S. shows that moving continues to be driven by housing affordability, as Americans increasingly seek opportunities to stretch their budgets. High housing costs in states like California and New York are prompting residents to relocate to more affordable states such as Texas, Florida and Arizona. In these states, the cost of living and housing prices are significantly lower, enabling many movers to transition from renting to homeownership or upgrade to larger, more comfortable homes. This financial relief is particularly appealing in an era of rising mortgage rates and limited housing inventory.

Generational preferences also shape moving trends. Gen Z is drawn to states offering affordable housing, strong career prospects and a laid-back, outdoorsy lifestyle. Meanwhile, millennials are favoring larger states like Texas, Georgia and Florida, which combine strong job growth, no state income tax and relatively affordable housing markets.

2024 real estate: Adapting to a new normal and navigating affordability challenges

2024 was a year of adaptation as the real estate market transitioned into a “new normal” post-health crisis, with most sectors returning to prepandemic trends — except for office and retail, which continued to navigate structural shifts and evolving consumer behaviors.

Multifamily housing experienced a major upswing, fueled by surging rental demand, while single family and middle housing fell behind, constrained by high costs and limited land availability. Suburbs and exurbs emerged as leaders in new home growth, driven by affordability and a focus on quality of life.

On the commercial side, industrial and self storage sectors thrived, powered by e-commerce growth, increased mobility and innovative adaptive reuse projects that repurposed underutilized spaces.

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However, despite these gains, housing supply remains far below demand, keeping prices high and highlighting the urgent need for creative solutions to tackle the ongoing affordability crisis.