The Expert Podcast

• Current estimate: 7 million homes short in the US housing market.
• The housing shortage is based on the gap between the number of homes needed for households that can afford them vs. current inventory.

• Early 2000s: Laws passed made it easier to get mortgages, even for people who didn’t qualify.
• Many people bought multiple homes, flipping or renting them out, leading to speculation.
• 2008 Housing Crash: Foreclosures took many homes off the market, and many builders went bankrupt.
• Post-crash (2007-2017): Builders were cautious, only building homes that were pre-sold, leading to a decade-long shortage.

• Pandemic housing surge: Renters looking to buy, contributing to the inventory shortage.

• Starter homes: Affordable, low square footage homes are almost non-existent now.
• Example: A 776 sq ft home now costs $800,000, up from $300,000 20 years ago.
• In most markets today, even modest homes are priced between $500,000-$600,000.

• Consider buying the cheapest home you can tolerate to enter the market, even if it’s not your dream home.

• National Association of Home Builders: Sky-high prices and housing shortages are here to stay, unless we build our way out of it.
• Building homes is essential to solving the crisis.
• Housing Shortage by State:
  • On average, each state needs to build 150,000 homes to meet demand. Some states may need more or fewer.

• A company in Boston is creating robot construction workers, starting with commercial projects. The aim is to apply these robots to residential projects once the system is perfected.

• The industry is evolving, with new tech like robot construction workers changing the game.
• First-time buyers face challenges with high prices, limited starter homes, and high interest rates.
• What impact will these developments have on the building industry and real estate market?

• Share your thoughts on the housing market, construction robots, and what the future holds for buyers and builders in the comments!