Tuesday, November 8, 2022 / by Brad Brethouwer
The real reason why there’s a shortage of homes in our current market.
In the last five or six years since we came out of the recession, the shortage of inventory in the housing market has been a recurring theme. For quite a while, it has been getting thinner and thinner, so I looked back and did a little research. That’s when I found an interesting article, and I posted it on my Facebook page if you want to see it. The article talks about the housing market and why we have a shortage right now, so I’m here to share that information with you.
Going back to 2007, the last significant year building permits were taken out during the recession, the builders took a hit. They dropped almost two-thirds off from what it was before. By around 2012, things started to pick up a little bit, and when 2022 came, it jumped up to around 1.6 million permits taken out. However, a lot of it was for apartment homes and not for residences.
"We’re behind by around seven to eight years in inventory."
If you look at all those years and do the math, the number that I've heard in a lot of the podcasts by real estate experts is that we’re behind by around seven to eight years in inventory. All those years when the builders were not building houses because of the uncertainties during the recession are now catching up, which is why it isn’t likely that the bubble will burst in the housing market.
Inventory is still low, so if you're selling, there's always a great time for you to do so. For more information about this topic or anything related, call or email me. I’d love to be your real estate consultant.