Housing Shortage of Epic Proportions Reported by JCHS
The Joint Center of Housing Studies at Harvard University recently released their 2017 State of the Nation’s Housing Study. Also, an additional blog post revealed some of the more surprising aspects of the study.
The first two revelations centered around the shortage of housing inventory available in existing homes and new construction.
Regarding Existing Home Inventory:
“For the fourth year in a row, the inventory of homes for sale across the US not only failed to recover, but dropped again. At the end of 2016, there were historically low 1.65 million homes for sale nationwide. Which, at the current sales rate was just 3.6 months of supply. This was almost half of the 6.0 months level that is considered a balanced market.”
Regarding New Home Inventory:
“Also, markets nationwide are still feeling the effects of the deep and extended decline in housing construction. Over the past 10 years, just 9 million new housing units were completed and added to the housing stock. This was the lowest 10-year period on records dating back to the 1970s. Also, this was far below the 14 and 15 million units averaged over the 1980s and 1990s.”
The biggest challenge in today’s market is getting current homeowners and builders to realize the opportunity they have to maximize profit by selling or building now!
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