Housing is one of the basic needs for healthy, safe and vibrant communities. Research, data and conversation illuminate three persistent problems that counties face related to housing:

• Affordability— Affordability refers to the relative price points for rental units and mortgages compared to median county and regional incomes. Home prices have appreciated more than 20 percent since 2021, driving up rents and mortgages while average earnings have increased by 8.5 percent over the same period.1 
• Supply— Housing supply is an increasing challenge in smaller communities in the post-pandemic era as communities with previously stable populations see an influx of remote workers, seasonal tourism and second-home buyers. 2
• Quality—Housing quality encompasses challenges such as the age, condition and location of housing stock within a community. As of 2019, more than 2.0 million households headed by adults aged 65–79 and nearly 1.5 million households age 80 and over reported difficulties navigating or using their homes. 3

COUNTY ROLE IN HOUSING

Counties are instrumental in community planning, land use, zoning and enacting policies and other regulations that affect housing. Counties distribute federal relief for emergency rental assistance, evictions and foreclosures, and provide temporary housing solutions to individuals with disabilities, low-income populations, veterans and those experiencing homelessness.

HOW AFFORDABLE IS HOUSING TO THE AVERAGE AMERICAN? 

Mapping the county housing income to cost ratio alongside population trends illustrates the concentration of high cost-of-living counties in large metropolitan areas.

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• In 18 percent of counties, households must spend more than 3.5 times their annual income to afford a typical home, according to the new Housing Solutions Matchmaker Tool.4
• Nearly a quarter (24 percent) of households that occupy rental units are severely cost-burdened, spending more than half of their annual income on rent.5
• Three out of every ten counties (30 percent) have higher than healthy seasonal vacancy rates.6

Some of the most unaffordable places to live are large metro areas with growing populations along the coasts, where individuals may be spending more than half of their income on housing in a given month. Affordability challenges are particularly salient for communities of color, who represent disproportionate shares of cost-burdened renters and homeowners.7

CAN NEW DEVELOPMENT KEEP PACE WITH HOUSING DEMAND?

In 2021, the largest number of new single-family homes and multi-unit apartment and condominium complexes were built in the South and West.

Source: U.S. Census Bureau – Building Permits Survey, 2021.

• Counties processed and approved permits for more than 1.7 million new residential units in 2021, with an estimated value of nearly $375 billion.8
• These new units account for a quarter of the estimated 6.8 million unit demand.9
• Regionally, as more individuals continue to move towards the South and West, population shifts will put pressure on those housing markets.10

Even as new developments continue to come online, demand far exceeds supply. The recent Census uncovered marginal population growth nationally, but sunbelt counties experienced explosive growth. Counties can continue to implement incentives and revise zoning standards, but the economics is clear: as long as housing units are in short supply, prices will remain high. 

WHAT IS THE QUALITY OF EXISTING HOUSING STOCK?

The percent of homes considered older housing stock varies across the country, with most counties having between three and 20 percent of homes built prior to 1940.

Note: County size based on population – small: 50,000 residents or less; large: 500,000 residents or more; mid-sized, between 50,000 and 500,000 residents. 
Source: NACo Analysis of U.S. Census Bureau - American Community Survey (ACS) 5-year estimates, 2020 (Table DP04).

• In nearly one-third of counties, at least 20 percent of the total existing housing stock was built before 1940.11
• Across all counties, almost half a million homes (443,000) lack complete plumbing facilities.12
• More than one-third of available homes have significant non-cosmetic deficiencies, conveying an estimated price tag of $127 billion for repairs.13

An essential component of housing is ensuring existing stock can meet the needs of residents. As homes age, problems with the foundation, plumbing, electrical and other elements that make a home habitable must undergo maintenance and updates to ensure safety and functionality. Meanwhile, older Americans are becoming an increasingly large share of the population and require more accessible units.   Home repairs and renovations are often costly, making quality one of the most critical considerations for low-income households across the country.

All analyses are based on 3,069 counties with active county governments. Connecticut, Rhode Island and portions of Alaska and Massachusetts are excluded since they do not have active county governments. Independent cities in Virginia are also excluded from the analysis.

• NACo’s County Explorer tool is the one-stop shop for accessing county-level indicators, with more than 1,000 maps from over 100 datasets.
• Housing indicators include: housing affordability and cost burdens, housing units and vacancy rates, building permits and migration trends.
• County data profiles on housing include NACo’s Housing Solutions Matchmaker Tool and County Housing Affordability Profiles. 

1- S&P CoreLogic Case-Shiller U.S. National Home Price Index; St. Louis Fed Average Hourly Earnings of All Employees, Total Private (CES0500000003)

2- National Association of Realtors, Housing is Critical Infrastructure: Social and Economic Benefits of Building More Housing, June 2021

3- Joint Center for Housing Studies of Harvard University, The State of the Nation’s Housing 2021, 2021.

4- The National Association of Counties, Housing Solutions Matchmaker Tool, 2022.

5- Ibid.

6- NACo Analysis of U.S. Census Bureau - American Community Survey (ACS) 5-year estimates, 2020 (Table B25004).

7- Joint Center for Housing Studies of Harvard University, The State of the Nation’s Housing 2022, 2022.

4- U.S. Census Bureau, Annual Building Permits Survey, 2021.

9- National Association of Realtors, Housing is Critical Infrastructure: Social and Economic Benefits of Building More Housing, June 2021

10- The National Association of Counties, September County Explorer Update: Population Trends, 2022.

11- NACo Analysis of U.S. Census Bureau - American Community Survey (ACS) 5-year estimates, 2020 (Table DP04).

12- Ibid.

13- Joint Center for Housing Studies of Harvard University, The State of the Nation’s Housing 2021, 2021.

14- The National Association of Counties, September County Explorer Update: Population Trends, 2022.