If you need assistance, please call 609-780-1434

Missing: 3.8 Million Homes

Friday, January 24, 2020   /   by Teresa Dipeso

Missing: 3.8 Million Homes

There are not enough homes for the population, a new report from realtor.com® warns. The shortage lands at 3.8 million homes nationwide. And the impact could be widespread: Competition among buyers could grow steeper, causing home prices to move higher.

Will the new-home market be able to catch up to demand? “Home builders have a mountain of opportunity, but a big hill to climb,” says Javier Vivas, director of economic research at realtor.com®. “The current inventory crisis and need for 3.8 million new homes means a nearly insatiable appetite from potential buyers, especially in the lower end of the market.”

Between 2012 and 2019, about 5.9 million single-family homes were built. However, during that time, about 9.8 million new households were formed.

Home builders, faced with labor and lot shortages and escalating prices, have started to ramp up their lean inventories over the past year. But levels still remain well below two-decade average lows. Realtor.com® researchers estimate that even with an above-average pace of construction, it would still take builders four to five years to return to equilibrium.

The missing inventory has been most acute in the entry-level and mid-range markets.

"Large populations of renters and well-qualified potential buyers with strong incomes are waiting in the wings,” Vivas says. “Assuming the economy avoids a full-on recession and rates remain low, the window for builders remains wide open. If builders can deliver homes at adequate price points, absorption will continue to strengthen through the first half of the decade.”

The situation is no different at the Jersey Shore, with inventory below the average 6 months of supply almost across the board.  Contact me today at 609-780-1434 to help you navigate this lucrative but nuanced market.  With over 25 years experience and over 500 homes sold and rented, I've seen it all!

Teresa M DiPeso & The DiPeso Group Jersey Shore Real Estate Experts
Teresa M. DiPeso
Long & Foster
Avalon/Stone Harbor/Cape May/Sea Isle/Wildwoods, NJ 08202
609-780-1434

The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity program of the Cape May County Multiple Listing Service. Real estate listings held by brokerage are marked with the Broker Reciprocity logo or the Broker Reciprocity thumbnail logo (a little black house) and detailed information about them includes the name of the listing brokers.
The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity program of the South Jersey Shore Regional MLS. Real estate listings held by brokerage are marked with the Broker Reciprocity logo or the Broker Reciprocity thumbnail logo (a little black house) and detailed information about them includes the name of the listing brokers.
This site powered by CINC: www.cincpro.com
*****START GA CODE***** *****END GA CODE*****