The Permanent Housing Shortage: What’s Behind the Crisis?
Download MP3The Housing Shortage Crisis:
- There's a significant shortage of houses, and house prices are skyrocketing.
- The process of finding a house to buy has become nearly impossible.
The Key Issue:
- There is a shortage of 7 million homes each year, creating a supply issue.
- The gap between single-family housing starts and household formations is staggering.
The Challenge of Building More Homes:
- To keep up with demand, the rate of housing starts would need to triple.
- Even with tripled construction rates, it would take 4 to 5 years to build enough homes.
Industry Struggles:
- The construction industry is dealing with various challenges, including:
- A shortage of builders and materials.
- The impact of rising interest rates and supply chain issues.
- Builders still recovering from the 2008 housing crash.
The Reality of the Housing Market:
- A significant shift in the housing market is unlikely in the short term.
- It’s doubtful that inventory will increase anytime soon.
What Can You Do?
- If you can find a builder, consider options like building a spec house, adding an addition, or constructing an Accessory Dwelling Unit (ADU).
Takeaways:
- The housing shortage isn’t going away soon, and you should plan accordingly.
