– The US is currently experiencing a shortfall of 7.2 million homes.
– 18 million households have been established in the last decade.
– Only 10 million single-family homes were built to cater to these households.
– The report suggests that this shortage may lead to increased competition and inflated prices in the housing market.
– Realtor.com’s analysis indicates a spread of home shortages across price brackets, with fewer available homes in the lower and middle-tier price brackets.
– This has implications for first-time buyers and those on a budget, who may find it increasingly difficult to secure affordable housing.
– The report implores increased construction efforts to balance the demand and supply in the housing market.
The Great American Homestead Hustle
Housing Shortage? What Housing Shortage?
Just when you thought the post-pandemic world had run out of pleasant surprises, it throws another curveball. According to the latest from the folks at Realtor.com, the US is short of a whopping 7.2 million homes! It’s like saying, “Sorry guests, the party’s on, but we just ran out of drinks.” Imagine that!
More households, Fewer Homes – A Puzzling Math
So, here’s the rundown: Over the last decade, the housing market got busy with baby-boomers, millennials, and Gen-Zers all clamoring for a piece of the American Dream. This led to 18 million new households being formed. But here’s the twist in the tale – only 10 million single-family homes were built to accommodate these folks. It’s as if the DJ didn’t anticipate the crowd at the party by only preparing a 5-song playlist.
The Snowball (Price) Effect
The fallouts of this shortage are quite apparent. Just as when the last slice of pizza is left at a party – the competition intensifies and so does the price! The housing market has turned into a gladiator match where combatants with the deepest pockets get the spoils (or homes!).
Looking for a budget abode? Keep dreaming…
The study suggests that lower and middle-tier price brackets are taking the brunt of this shortage. This could mean that those hunting for their first home or working with a budget have their work cut out for them. It’s like being that guy at the party who shows up late and all that’s left is the vegetable dip.
A Plea for Relief
The report calls for increased construction to plug this gaping hole in the housing market. Time to roll up those sleeves and build, America! Unless we want to continue this wild house party where everyone’s invited but there aren’t nearly enough beds to crash on.
Bidding Adieu…
In the grand hall of real estate, there’s a party happening where everyone wants to dance, but there aren’t enough dance floors. The stern music of 7.2 million missing homes doesn’t quite make for an upbeat number. The house price increases and the intensified competition play into the hands of those already holding the property cards, leaving the first-time buyers and budget-bound house seekers to play a game they’re very likely to lose. So, here’s hoping America swings its construction hammer hard and fast, turning this house famine into a feast of options for everyone. ‘Cause let’s face it, nobody likes a party with no place to sit (or in this case, live)!
Original article: https://www.inman.com/2024/02/28/us-housing-market-is-short-7-2m-single-family-homes-realtor-com/
