Housing Shortage Gets Worse
Diana Olick at CNBC reports that the already big housing shortage only got worse in 2020…(CNBC)
- According to new research from Realtor.com, “The U.S. is short 5.24 million homes, an increase of 1.4 million from the 2019 gap of 3.84 million.”
- Making matters even worse is the pace of construction. According to the U.S. Census, single-family construction is running at the slowest pace since 1995 despite a steady rise since 2009.
Danielle Hale, Realtor.com chief economist, said this was a problem even before covid…
- “The pandemic has certainly exacerbated the U.S. housing shortage, but data shows household formations outpaced new construction long before Covid. Put simply, new construction supply hasn’t been meeting demand over the last five years,” said
NOTE: The U.S. Census found that 12.3 million American households were formed from January 2012 to June 2021, but just 7 million new single-family homes were built during that time.
