According to Realtor Magazine, the lack of inventory around the country is fueling
a sharp rise in housing costs. Rents rose at their highest pace in 7 years and home
prices increased nationally by 6%. This is 3 times the pace of average wage growth.
Housing costs are expected to keep rising in 2016 because not enough homes are being built.
New construction of single family homes, condominiums, and apartments totaled 5.6 million
since 2009. Also, since 2009, 1.7 million housing units were demolished because they were considered
uninhabitable or obsolete. That leaves 3.9 million units in stock. With an additional 17.3 million
people living in the country over the same time period, 3.9 million units is not enough.
Rental vacancies are falling and housing inventories are shrinking. Of course, local market
conditions vary. States with declining populations may have less of a need for additional
home construction. But those places are exceptions to the rule. Housing shortages are in most
states; do not expect anything to change this year.
There are two major consequences of a persistent housing shortages:
1) Continuing steep rise in housing costs
2) People, especially young adults, may have to find multiple roommates
or live with their parents
Most young people dream about owning their own home. If we don’t encourage
more housing development in the country soon, living with mom and dad may
be the only option!
For all your real estate needs contact Sheri Jones, today!
909-66-1838 sherijones2012@gmail.com
#HousingShortages #RealEstate #HomesBySheri
Comments(1)