I’ve been telling everyone that I can get to listen that the U.S. is going to be in a full blown housing shortage crisis for several years now and have faced some serious pushback over my opinion.
Now, major news outlets and very credible economists are saying that very same thing. So are home builders throughout the U.S.
In a nutshell, here’s the reason. To keep up with population growth, the U.S. needs to create 1.6 million new home starts per year. Projections for this year indicate about 250,000 new homes being built. Simple math will show that the inventory will run out soon and then, well let’s talk about supply and demand.
Here’s another article from today that not only fortifies my comments, but also puts a realistic face on the mood and mindset of the American population:
“Last year, the number of people who bought new homes fell to its lowest level dating back nearly a half-century. Sales this year haven’t fared much better.
Builders are struggling to compete with foreclosures, which have made the price of re-sales more competitive. Many buyers are having difficulty obtaining loans or meeting higher down payment requirements. Low appraisals are scuttling some deal after contracts have been signed. Some would-be buyers who want to purchase a new home can’t sell their old one.
While new homes make up a small portion of sales, they have an outsize impact on the economy. Each new home built creates an average of three jobs for a year and generates about $90,000 in taxes, according to the builders’ trade group.”
The opportunity for Canadians to purchase U.S. real estate and benefit from the coming boom (yes, a real estate bust is always followed by a boom) continues to be our team’s main focus.
Have a look at what we’re doing and let us know how we can help you achieve your U.S. real estate goals!