Home buyers and real estate investors across America are frustrated by 1) record-high home prices and 2) record low homes for sale, or inventory. But there is help on the way. Home Builders across America are building new houses and apartments at a ferocious pace. According to US Census Bureau estimates, 1.5 Million Homes are currently under construction.
Housing Inventory Surge Video: https://youtu.be/Uo4AtH-Mu80
That’s the highest level in the last 50 years, and even higher than the mid-2000s Housing Bubble which Crashed Home Prices across America by 25%.
Combining this Home Construction Data with Chase Shiller’s Home Price Index indicates that America is at the peak of a Housing Cycle in 2022. Both Home Building and Prices are at all-time evens, much like what occurred in 2006 before the Housing Bubble burst.
New Construction is especially prevalent across the South (Housing Markets across Texas, Florida, and North Carolina), which has experienced a massive surge in Housing Starts over the last several years while its population growth has actually gone down. This suggests that a significant amount of overbuilding is taking place.
Meanwhile, the West Coast looks even worse. Population Growth has plummeted to a mere 36k in 2021 after being near 700k in prior years. Meanwhile, over 400k Housing Starts took place in 2021. There is overbuilding currently occurring across California, Idaho, Utah, Portland, and Washington.
Some people might naturally wonder why, if there isn’t a structural Housing Shortage, that active inventory on the Housing Market is so low. According to Realtor.com Homes for Sales are at their lowest level ever in 2022. This reduction in inventory is mainly due to a shortfall in supply of EXISTING homes. 1.5 Million fewer existing homes have been listed to the market over the last 2 years.
The Million Dollar Question: what happens when these 1.5 Million delayed listers, along with the 1.5 Million in Homes Under Construction, hit the market in 2022-23?
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0:00 Home Builders are DOING IT AGAIN
1:49 1.5 Million Homes Under Construction (RECORD HIGH)
3:24 Home Prices Hit ALL-TIME HIGH in 2022
4:45 Housing Bubble Peak in 2022 (Case Shiller & Census Data)
6:22 But…aren’t We 5 MILLION Homes Short?
7:34 Overbuilding in South (Texas, Florida, Tennessee, North Carolina)
8:58 West Coast Housing Markets (California, Idaho, Utah) look Pretty BAD
10:26 America’s Demographic Decline Continues
11:30 Why is Housing Inventory So LOW in 2022?
12:56 The Million Dollar Question…
13:57 The Housing Crash Will Occur WHEN THIS HAPPENS
15:20 Want More Housing Market Data?
#HousingCrisis #HomeBuilders #UnderConstruction