Housing Shortage Forecast!!!

Harvard Report Says Housing Shortage Is Coming

Harvard University’s Joint Center for Housing Studies in its latest annual “State of the Nation’s Housing” report says that within the next decade, 16 million new housing units will be needed to meet population growth and shifting demands

Household growth, which has dropped drastically in recent years, will be the key component in a housing shortage.  From 2007-2010, household growth decreased to about 500,000 per year which was less than half the 1.2 million annual increase averaged prior from 2000-2007.

To absorb the current rate of foreclosed  homes in  most markets, a more normal rate of household creation is is necessary.  Stalled househlod growth has been attributed to the delay in home ownership by young adults and  slowd immigration.

“With inventories of new homes at historic lows, a turnaround in demand could quickly result in tighter markets,” the report notes. “Over the longer term, the number of younger households is set to rise sharply, supporting growth in the population that fuels growth in both new renters and first-time buyers. The path of the economy and evolution of the mortgage market will determine when and if this increased demand materializes.”

The reasons sited in the report for increased demand are are population growth, increased immigration and a need for smaller homes as baby boomers downsize for retirement.  Demand for second homes also figures into the equation making 16 million new homes the predicted need in the next ten years.   

Now is the time to buck this trend and buy your second or retirement home in Big Canoe or the north Georgia mountains while we still have a large inventory of great homes at bargain prices.