Northeast

The Northeast has the most pronounced housing shortage outside of California.

It is estimated that New York City alone needs to build more than one million homes to keep up with demand. But most of the residential construction in recent years has focused on high-end luxury developments that are not designed to be broadly affordable. Many of the region’s cities face this conundrum: in need of affordable housing but only building luxury housing. Barring legislative changes, this will likely continue.

New housing starts in the region have declined over the past few months, although they remain higher than when the year began. Economic uncertainty has dampened buyer demand, causing a slowdown in an already stressed housing market. Bigger cities have done a better job of addressing the housing crisis, with the hottest residential markets shifting from New York City to Buffalo and Philadelphia.

Despite these developments, there remains considerable work to be done in the region. The infrastructure sector, bolstered by federal spending, is thriving. Several new manufacturing facilities are also in development, along with data centers and hospitals. These projects represent a significant opportunity for the market, as they will likely one day anchor affordable housing and mixed-use projects.

* Other structures include religious buildings, amusement, government communications, and public recreation projects.