It’s been about 10 years since the end of the last housing boom in the 2000’s. But now it appears there has been a complete reversal of the problems experienced a decade ago……now there is a historic shortage of new homes.
A recent article in The Wall Street Journal titled “The Next Housing Crisis: A Historic Shortage of New Homes” describes the issues surrounding the shortage of new home construction.
“Home construction per household a decade after the bust remains near the lowest level in 60 years of record-keeping, according to the Federal Reserve Bank of Kansas City.
A combination of tightened housing regulations, a lack of construction labor and a land shortage in highly prized areas is driving the crisis, according to industry experts.
The National Association of Home Builders estimates builders will start fewer than 900,000 new homes in 2018, less than the roughly 1.3 million homes needed to keep up with population growth. The overall inventory of new and existing homes for sale hit its lowest level on record in the fourth quarter of 2017, at 1.48 million, according to the National Association of Realtors.”
Read the full article here:
https://www.wsj.com/articles/american-housing-shortage-slams-the-door-on-buyers-1521395460
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