I'm sure you've heard someone in the real estate industry say it.
"Inventory is low."
"There's a housing shortage."
Top real estate agents know it's a problem. Buyers looking for houses for sale in Florida know it. If you're thinking of selling your house, you really should know it. We are experiencing a housing shortage.
Why Inventory has been shrinking.
New Home Construction Fails to Keep Pace
Housing starts have been constrained post recession due to shortages of land, labor, and materials.
Housing starts will total 1.3 million in 2019,
but the 50-year annual average is 1.6 million (1).
The Aging Housing Stock
As homes age, they will either need to be either remodeled to remain in the pipeline or town down and replaced. If not, inventories will lessen over time.
The Median age of a U.S. home in 2016 was 37 years.
Over 50% of owner-occupied homes in the U.S. were built before 1980 (2).