North Dakota faces major housing shortage as baby boomers age

A new study from North Dakota State University’s Center for Social Research, in collaboration with the North Dakota Housing Finance Agency (NDHFA), projects significant housing needs in the state due to an aging population. The 2024 Statewide Housing Needs Assessment, an update to the 2022 study, reveals that the number of residents aged 65 and older is expected to increase by 22% — from 78,047 in 2022 to 95,277 in 2027. This demographic shift will affect all eight regions of the state.

The study highlights the growing demand for housing solutions that cater to the needs of both an aging population and lower-income working households,” NDHFA’s executive director, Dave Flohr, said in a recent press release.

Although the number of households earning more than $125,000 has increased across the state, many North Dakotans continue to face affordability challenges. Fifty-one percent of households still earn less than $75,000 annually, and 33% earn under $50,000. The study emphasizes that affordable housing for lower-income households will be in the highest demand.

The assessment also predicts a 4% increase in the state’s population by 2027, which equates to about 28,000 additional people. As a result, an estimated 20,000 new single- and multifamily units will be needed, marking a 6% increase from 2022. The report stresses the importance of affordable housing options for all income levels.

The 2024 study is available at www.ndhfa.org and provides an in-depth look at North Dakota’s housing trends, including sales, homelessness, and affordability challenges.