Why is there a home shortage?

Why is there a home shortage? According to Freddie Mac, the US is more than 3 million homes short of buyer demand. I represent many frustrated buyers on The Main Line and also have helped these same frustrated buyers into the homes of their dreams. Today I would like to help put into context this home shortage for buyers who are unfamiliar with the market, so they understand how to adjust their expectations. First of all there are post Pandemic-related supply chain issues. Some builders have their hands tied and are waiting months for something as simple as a door frame. This adds tens of thousands of dollars in cost to the typical house. But another factor that most people have not considered is that part of the housing shortage goes back to the housing bubble collapse in 2008. Many say it was the worst housing market crash since the Great Depression, caused by subprime lending and oversupply of homes and as a result, many homebuilders went out of business. Many of those who worked in this industry, gave it up and found other work so the workforce never quite recovered. As the housing market rebounded, and Americans started buying more homes, building stayed below normal, and lenders were much more cautious.  Building continued for more than a decade, and now the largest generation, millennials, are starting to settle down and buy houses. So we have an influx of buyers now and an under supply of homes. Some of the biggest problems in construction is finding labor as well. What is a buyer to do? Well, let’s start with not delaying your home purchase. Interest rates are going up and inflation makes renting unstable, I have a whole list of resources that discuss why home ownership is a much safer place than in a market for a example at this moment. For first time home buyers and those who are downsizing, and watching this video, please now is the time to sell. Buyers are still looking to purchase homes. If you have considered selling in the past five years it is time to list, if you have thought about buying in the last five years, do not delay. I have found homes for a number of first time buyers this year and they have all been extremely happy with their terms, see my blog for their stories and my online reviews. Contact me today and let’s start preparing your home search, Kimmy Rolph sells The Main Line and local areas. 

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