During Praedium’s recent Investor meeting, an astute investor questioned where the 4.1 million households in the gap between household formations and housing construction since 2011 have gone. We thought this was an interesting question and, with our research partner, SitusAMC Insights, we decided to dig into this issue.

Our subsequent research shows that manufactured housing has made a meaningful contribution to the housing supply. Over the same period, a sharp decline in housing vacancies has reduced the number of available homes, absorbing part of the demand that new construction failed to meet. These findings explain how existing housing stock has mitigated some of the gap, though persistent undersupply continues to constrain availability and drive affordability challenges.

You can read more about this research by downloading our research paper.