INDUSTRY NEWS

Welsh housing crisis worsens

Joshua Helm-Cowley 19 February 2026

Wales is short of almost 10,000 affordable housing units, according to new Government figures – with shortages across all tenures.

‘Unmet housing need’ in Wales has gone up by 64% since 2019 according to the latest Government figures.

These numbers take into account overcrowded and ‘concealed’ households – homes with more than one family living in them – as well as homeless figures. They also include projections for newly arising need.

Why has the figure jumped?

The increase has primarily been driven by an exponential rise in the number of households in temporary accommodation and drives home the extent of the supply crisis gripping Wales.  

In all the shortfall is estimated to be 9,400 affordable housing units, with the Welsh Government’s Chief Statistician estimating Wales will need just over 8,700 homes per year to make it up. 

Rent Smart Wales data, up to January 2026, shows that the Welsh private rented sector (PRS) has lost more than 2,200 properties since the last Senedd election in May 2021.

This is despite increases in the available private rented stock in cities such as Cardiff and Swansea, suggesting that it is those in rural communities who are hit hardest by the housing shortage.  

With the next Senedd election fast approaching, we have been clear that Wales cannot afford to lose any more homes and have put expanding supply and maintaining confidence at the heart of our asks of the next Welsh Government.

You can read more about this is our Senedd Election Manifesto.

Wake-up call

 We are arguing theses latest housing need estimates reflect a market that is fundamentally not working for Wales and should serve as a wake-up call for all parties ahead of the election.

The scale of need means no tenure can be treated as secondary and no provider can be ignored, including the PRS and private landlords. 

If Wales is to meet its target of delivering over 8,700 homes per year, it will require partnership, stability and a clear commitment to growing supply across every part of the market, and we are ready to help the next Welsh Government work with landlords to achieve this. 

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Joshua Helm-Cowley
About the author
Public Affairs Officer

Before joining the NRLA, Josh worked for Members of Parliament for nearly six years in a variety of roles, including a position leading on communications for a Government Minister, working on campaigns ranging from education to local government reform and funding.