The Housing Market

 The Housing Market

Noah LaPorte

In the current housing market the inventory is far lower than the demand. When the supply for an item which in this case is a house stays relatively the same, while the demand increases, it causes the price to shoot up. 

For example, according to US.News.com, “Real estate information company Zillow predicts home prices will end 2021 a whopping 19.5% higher than the end of 2020.” This means it may be the perfect time to sell due to the large demand for housing. But with that buying houses are becoming much more competitive.

This lack of inventory is partially due to many more people purchasing multiple houses and either renting them out, or flipping them for higher prices. This being a very smart investment for many is making it very hard for some to find houses that are affordable.

Although this isn’t the only cause for this shortage. To sum up business insiders, there isn't enough foreclosures occuring to make a difference in this supply shortage. This added on to the rising prices for land and building materials making it harder to build new homes.

This graph above shows how the length of time it takes to build a home is rising and more jobs are being unfilled within construction. Correlating the fact that the lack of construction workers is partially causing houses to take longer to build. Causing a smaller supply increase than would be needed.

This will only continue to be a problem, I was able to talk with realtor Lisa Nevinski who has over 20 years of experience and happens to be my mom. She states, realtors without any experience causing prices to go 20,000-40,000 dollars over list price. With 10-20 offers on each home this problem will only continue. 

Our age group will have to deal with this problem in the next few years, but how will we fix it?

Works Cited 

What to Expect from the Housing Market in 2022 | Real ... 

https://realestate.usnews.com/real-estate/articles/what-to-expect-from-the-housing-market. 

Sheffey, Ayelet. “3 Reasons Why the Housing Shortage Will Last for Years, Goldman Sachs 

Says.” Business Insider, Business Insider, 19 May 2021, https://www.businessinsider.com/housing-shortage-real-estate-inventory-foreclosures-builders-millennials-goldman-sachs-2021-5.