The Future of Housing, Part 2: Infrastructure and Housing History

In the first post in this series, I pointed out the labor problem the construction industry faces today—one that leaves the industry poorly equipped to face the unprecedented housing needs to come. Now let’s turn to how our housing infrastructure got to where it is now.

Infrastructure and Housing

At the outset, we were a small nation. huddled along the eastern shores of the original 13 colonies.

The US Population in 1790—huddled around available infrastructure.

At every stage of our nation’s history, the decision of our national government to invest in infrastructure was directly linked to growth in the housing industry. With the annexation of the Louisiana Purchase in 1803, the manifest destiny of our nation to forge Westward was put in motion.

The Erie Canal was a major infrastructure improvement that allowed for expanded housing possibilities in the West.

From 1819 on, infrastructure improvements have been the backbone of this growth. The investors behind the creation of the Erie Canal created a commercial gateway from the Atlantic Coast to the Great Lakes.

They knew, even then, that every shipment through the canal meant new commercial markets, and new housing to accompany the prosperity that followed.

Population centers could push even further West, even faster, with the advent of the Transcontinental Railroad.

Similarly, the advent of the Transcontinental Railroad in 1876 made it possible for the US to see its commercial and residential future become a coast-to-coast reality.

Once again, towns and cities that cropped up in previously undeveloped parts of the nation brought hordes of new migrants, all of which made for new opportunities for home builders who followed shortly thereafter.

Growing Transportation

Today’s interstate commerce could not have been stitched together without the growth of the automobile industry after World War II and the creation, in 1957, of the federal interstate highway system. The rise of the auto industry during the balance of the 20th Century had much to do with the burgeoning success of the suburban real estate industry that followed World War II, and the tremendous growth of new areas of our nation touched by the highways that criss-crossed the every region of the land.

Even further, even faster: The Interstate Highway System links population centers across the US

As a result of this steady growth, between now and 2060, the current U.S. population of 323 million is projected to grow over 30%, to 417 million. We will reach 400 million in 2051, a steady increase of 2.1 million per year.

In the next post in this series, I’ll explore the shape of America’s new housing frontiers—and give some thought to where and how our population will grow the most.

This blog post is adapted from a speech I gave at the 2016 Housing Leadership Summit in Laguna Niguel, CA.