Annual household formation this decade has averaged 1.04 million, while housing production has averaged 880,000 units. The resulting annual housing undersupply of 160,000 units has been a major contributor to rising housing costs.

Over the past seven years, single-family sales prices increased by 7.1% per year, much higher than the average wage growth of 2.5%.

Multifamily’s 3.1% average annual rent growth also outpaced the average wage increase.

Trends in 2019 will not necessarily mitigate housing unaffordability but should not exacerbate the situation.