Did you know that 1.5 million new housing units are needed each year to accommodate the growing population? Based off a seven-year span statistic, on average there are only 766,000 homes that are available.
To put it in perspective consider this. There are roughly 4 million births that occur each year in the U.S. That’s twice the amount of deaths that happen each year. That’s an annual population gain of about 2 million. Therefore, it’s no surprise that there is a shortage of inventory. Not to mention immigration, which makes up another half million to one million each year, bringing the U.S. population up by about 3 million each year.
According to chief economist of the National Association of REALTORS® at the Economists’ Outlook blog, “These multiple years of undersupply compared to what is needed is the reason why much of the country is experiencing a housing shortage with few inventory of homes for sale and falling apartment vacancy rates.”
Yun also notes that builders need to ramp up construction soon, or the housing shortage will worsen.
Source: “Housing’s Undersupply Raises Concerns,” National Association of REALTORS® Realtor® Magazine Online (May 12, 2015)
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