Study Says Underbuilding of Homes is Fueling Housing Shortage and Affordability Crisis
According to a new study that was released from the National Association of Realtors, there is a significant shortage of homes in the market right now.
Around the U.S. it is estimated that there is an affordability crisis as far as rent and housing goes, with minimum wage workers now priced out of renting most spaces in cities all over the country.
The recently released report suggests that there might be a need for millions more homes to help solve the issue, anywhere between 5 to 6.8 million housing units are needed.
There isn't enough supply in the market and that is why prices they say are too high for so many. The solution they propose is beefing up that housing inventory. And there is plenty of space to do it that still remains vacant all over the country.
“There is a strong desire for homeownership across this country, but the lack of supply is preventing too many Americans from achieving that dream,” - L. Yun, NAR’s chief economist
Getting those homes built in a variety of places though is somewhat of a nightmare considering the barriers that exist surrounding all of the permission slips and required approval that's involved along the way.
Shortages In The Housing Market Include Those For:
- first-time buyer houses
- affordable housing options
- multifamily buildings
- trade-up properties
- rental properties
LET'S START BUILDING
The solution it looks like according to this report is that millions of different homes are needed to be flooded into that market to boost inventory and help to even out the price bubble that people are seeing in price.
The government has not been doing a good job at trying to control this market (big shock). Thus far they have failed to ensure the proper supply of inventory and their coercion in the market has not succeeded to bring about desirable conditions for the average person.
In many ways they make things worse for the individual with their intrusion in this industry and worsen the cost of living. It is this coercion which arguably restricts solutions from coming about faster for individuals around the country.
For those who are waiting on the federal government to fix this housing problem that exists in the market today they might be waiting a long time. If anything you might see it get worse based on their track record.
