12 Feb 2026
Welsh government has today published its latest estimate of housing need, which considers both existing unmet need and newly arising need. Newly arising need is estimated using the 2022-based household projections.
The data shows there is an estimated existing unmet need of 9,400 homes. This is a standalone figure which has increased by 64 per cent since the 2019 based estimates. The figure is based on the number of households that require a home due to homelessness, overcrowding, or being hidden within another household. The data shows that this need must be met fully by affordable housing.
Furthermore, it is estimated that an average of 7,800 to 9,300 additional homes are required annually over the next five years to meet newly arising need. Of these additional homes, 65 per cent will be for market housing and 35 per cent for affordable housing.
Commenting on the data, CIH Cymru director Matt Dicks said: “This update to the housing need data is much needed and shows the stark reality of Wales’ housing emergency with high levels of homelessness, rising demand for affordable homes and difficulty accessing market housing. Yet whilst the data does provide a useful estimate of affordable housing need, it does not provide a breakdown of the sizes and types of home that will be needed. We repeatedly hear from our members that there is a shortage of one-bed and four-bed plus homes. Our manifesto, A plan for housing in Wales, outlines that as we develop homes we also need to ensure these are of the right size and type. We need this to form part of the housing need data to ensure we can develop homes of the right type and size.
“Our social housing providers are committed to developing the homes we need to meet the estimated existing unmet need but have repeatedly informed us through our series of sector snapshot surveys that to develop at the pace and scale needed we need to look at the current blockers to development. These include planning delays, sufficient levels of investment and the availability of land.
“Our manifesto, A plan for housing in Wales, outlines that housing should be a foundation mission of government achieved through legislating for a right to adequate housing in Wales. This will provide the paradigm shift, and be the mechanism and driver to increased investment and overcome existing barriers to developing the homes we need to end Wales’ housing emergency. In turn, this will ensure that this and future generations have access to a safe, suitable and affordable home.”