Yes you read the title correctly. There could be a housing shortage coming believe it or not. I just finished reading an article that says that there is a good chance of a not to far in the distance future housing shortage. You are probably telling yourself that is impossible. No way. It is estimated that there are about 7,000,000 vacant homes in our country. Housing shortage? How can that be?
First of all no one wants to live where those 7,000,000 vacant homes are. There are no jobs in those areas. The jobs are gone for a very long time. Think Detroit as a good example. Consequently those homes may sit for a very long time.
Further according to the article there are a few other very good reasons for this possibility. Only 672,000 new homes were started in April. This number of housing starts does not come close to meeting your nation's normal population growth. In addition not as many new households have been formed during our recent economic calamity. Normally 1,300,000 new households are formed each year. In 2009 only 398,000 households were formed according to information provided by the federal government. More young adults are currently living with their parents. (You and I both know how long that will last!) When the economy picks up you know those kids are out the door. Good bye mom and dad! Where are they going to live?
And the final reason cited by the article is that builder financing is extremely difficult to obtain these days. New home builders cannot get financing to buy land for development nor can they get the funds to build homes even if they have the land. Double whammy!!
So there you have it............housing collapse to house shortage.........................never a dull moment in real estate. And what will this mean for my Lake Conroe real estate market???
Oh yes and by the way......... we are also going to be short of rental housing. Maybe the kids will be with mom an dad longer than we thought.
Have a great day!
Ron Wickes
Full time real estate professional in the Lake Conroe, Texas area. I work with both residential and commercial properties. Your real estate goals are my first priority.
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