Housing Supply Not Keeping Up with Population Increase

Many buyers are wondering where to find houses for sale intoday’s market. It’s a true dilemma. We see an increasein buyer demand, but the supply available for purchase isn’tkeeping up.

The number of new housing permits issued prior to the greatrecession increased for 15 years until 2005 (from 1.12 million in1990 to a pre-recession peak of 2.16 million in 2005). Accordingto Apartment List,

“From 1990 to 2005, the number of single-familypermits issued more than doubled, while the number of multi-familypermits grew by 49 percent.”

When the housing market crashed, the number of new homespermitted decreased to its lowest level in 2009 (seebelow):

Since then, supply and demand have been out ofbalance when it comes to new construction. According to the samereport,

“Construction of single-family homes has recoveredmuch more slowly — the number of single-family housing unitspermitted in 2018 was barely half the number permitted in2005.”

Why is New Construction So Important?

As the U.S. population increases, there is also anincrease in the need for new homes. Today, new construction is notkeeping up with the increase in the nation’s population. Thereport continues:

“The total number of residential housing unitspermitted in 2018 was roughly the same as the number permitted in1994, when the country’s population was 20 percent less thanit is today.”

Essentially, the dip in home building coupled with the steadilyincreasing U.S. population means there is now a selling opportunityfor homeowners willing to list their current houses.

Bottom Line

If you’re considering selling your home to move up, now isa great time to get a positive return on your investment in amarket with high demand. Let’s get together to determine thespecific options available for you and your family.