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The linked article from the Wall Street Journal states that new data from Freddie Mac reveal the United States is 3.8 million single-family homes short of meeting current demand for housing, with the deficit being "especially acute" for entry-level homes. Freddie Mac's chief economist said this is what happens "when you underbuild for 10 years." The WSJ reports home builders would have to build slightly more than 1 million single-family homes a year to meet long-term demand. Not only is it a detriment to folks trying to enter the market, it's also hindering U.S. economic growth, per Freddie Mac.
The linked article from the Wall Street Journal states that new data from Freddie Mac reveal the United States is 3.8 million single-family homes short of meeting current demand for housing, with the deficit being "especially acute" for entry-level homes. Freddie Mac's chief economist said this is what happens "when you underbuild for 10 years." The WSJ reports home builders would have to build slightly more than 1 million single-family homes a year to meet long-term demand. Not only is it a detriment to folks trying to enter the market, it's also hindering U.S. economic growth, per Freddie Mac.
Yup. About 2007, it was "we need 1.5MM new homes per year." About 2010, it was "we're only building 500K new homes/year." The general need didn't really decrease that much. So, from 2008-2009 all the way until "now" - that's at least 10 years we've "underbuilt".
Look at our little corner in the Triangle of NC. New builds were "healthy" in 2006 (that is, the right % of them were completed prior to selling, but very few finished unsold for 90 days, and no big discounts.
2006 - 8,500 new SF homes sold
2019 - 8,800 new SF homes sold
and the deficit between? About 34K homes IF demand was the same. Our total # (new & existing) sold recovered by 2016. That's 4 full years we're behind. Say demand dropped 25% - 3 full years.
The linked article from the Wall Street Journal states that new data from Freddie Mac reveal the United States is 3.8 million single-family homes short of meeting current demand for housing, with the deficit being "especially acute" for entry-level homes. Freddie Mac's chief economist said this is what happens "when you underbuild for 10 years." The WSJ reports home builders would have to build slightly more than 1 million single-family homes a year to meet long-term demand. Not only is it a detriment to folks trying to enter the market, it's also hindering U.S. economic growth, per Freddie Mac.
A lot of people may WANT a single family home, but what they can AFFORD may be a different matter. They may have to settle for a 2BR apartment until such time as they can save enough money to afford to buy a SFH. The way prices of existing homes are zooming up right now in many parts of the country, they may have to wait for quite awhile to own a SFH.
The economic law of supply and demand has a way of working out these situations, but it may not be sufficient to make everyone happy. Quite often, the affordable housing is not in a location that most people want. In that case, people are going to have to decide whether to continue to pay high prices where they are or to relocate to a more affordable area where the houses are cheaper but the job opportunities may not be as great. Fortunately, WFH makes this transition easier now than it was just a year or so ago.
The linked article from the Wall Street Journal states that new data from Freddie Mac reveal the United States is 3.8 million single-family homes short of meeting current demand for housing, with the deficit being "especially acute" for entry-level homes. Freddie Mac's chief economist said this is what happens "when you underbuild for 10 years." The WSJ reports home builders would have to build slightly more than 1 million single-family homes a year to meet long-term demand. Not only is it a detriment to folks trying to enter the market, it's also hindering U.S. economic growth, per Freddie Mac.
they dont have to be homeless,they just stay in rental apt longer.
Remember the old days how hard it is to save that 20% down payment?
Also once you bot a home,you have other expenses like drapes,blinds,furniture,washer/dryer,lighting fixtures,you can hire someone to mown lawn and pay the going rate,or buy your own lawn mower and weed,install garage door opener,weed wacker,fertilser,pesticides,water bill is higher,gas and electric as well.
then as years gone by,you need new fence for your backyard,new roof,carpet,fix the toilet,water heater,A/C,treat termites,new dishwasher,
And you have to pay property tax,homeowner insurance,if you live in a subdivision,annual maintenance fee.
you may need 2 cars ,not one.
you will drive more,so more gas and more wear and tear.
try to find a plumber on weekend and pay him extra,same go with electrician.
it may not be a bad idea just to live in an apt and pay rent each month,let the landlord worry about the rest
they dont have to be homeless,they just stay in rental apt longer.
Remember the old days how hard it is to save that 20% down payment?
Also once you bot a home,you have other expenses like drapes,blinds,furniture,washer/dryer,lighting fixtures,you can hire someone to mown lawn and pay the going rate,or buy your own lawn mower and weed,install garage door opener,weed wacker,fertilser,pesticides,water bill is higher,gas and electric as well.
then as years gone by,you need new fence for your backyard,new roof,carpet,fix the toilet,water heater,A/C,treat termites,new dishwasher,
And you have to pay property tax,homeowner insurance,if you live in a subdivision,annual maintenance fee.
you may need 2 cars ,not one.
you will drive more,so more gas and more wear and tear.
try to find a plumber on weekend and pay him extra,same go with electrician.
it may not be a bad idea just to live in an apt and pay rent each month,let the landlord worry about the rest
Very valid points. Home ownership is not easy or cheap. For some people, renting is their best option.
If this were really true we would have a lot more homeless people running around.
I read things as explicitly applying to the act of purchasing a single family house (based on one's desire to do so). It doesn't seem to apply to purchasing other types of residential units (condo, multi-family house) and, more to my point, does not apply to there being demand to meet people's living situation via renting.
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