Why so few houses to buy in 7 short points.
1. After the last "housing market downturn", many construction workers (tradespeople) found other jobs.
This exodus from the trades has still not reversed.
2. The building slump in America has continued thru today, and hasn't recovered to the needed levels to increase new home availability.
Finding enough skilled workers is still a problem for builders who are making an attempt to grow their inventory of projects.
3. The pandemic hit and slowed everything down.
With the government paying people to stay healthy, and with the fear of catching something awful, workers stayed home.
4. As part of the latest slow down, supply chains became broken and sporadic.
We've all seen the ships in the harbor waiting to unload, and many people have heard stories of having to back-order appliances or other housing components.
5. Site selection is now very limited. Competition for acceptable locations where new construction of more than one home so a builder can turn a profit, is causing more delays.
As people move from the cities, fewer parcels of land are available to builders at useful prices.
6. Then there is new and modified zoning that has become more restrictive in many areas to consider flood zones, conservation, density, and energy compliance regulations, etc.
2014 saw a restructuring of the flood zone designations across the USA.
More recently, solar collection and distribution has taken up more spaces.
7. With all these decreases, delays, and restrictions, there has been an increase in a population that is allowed to work from home.
The newly found freedom to tele-work, has contributed to the competition for homes outside of traditional population centers.
While this may be a good thing for many families, there aren't enough homes to handle the desires of those looking to live, work, and play like never before.
Any one of these 7 points is an inhibitor by itself.
And when taken together as a package, it may be awhile before there are enough cohesive adjustments to to catch up.
The next "housing market downturn" may not arrive for awhile.
What do you think? Will the things like shortages that are being forecasted in grains and fuels cause the next housing slump arrive sooner than we expect? What do you think is affecting the housing inventory?
What we know is good to know !
Best wishes, Heath & Holly
Heath Coker, Associate Broker
Top 7% of Berkshire Hathaway HomeServices network agents nationwide
Berkshire Hathaway HomeServices Robert Paul Properties
508-548-8888 c (Android) / 508-274-5613 c (Apple) / 508-540-9800
Holly Coker, Senior Sales Associate, 508-274-5612 / 508-540-9800
It's a beautiful day on Cape Cod! Licensed in MA
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