This article is from the Charfen Institute in April 2013
In this month’s AgentGPS Newsletter, we discuss today’s real estate market. Alex is a regular guest on Fox Business and this week he was invited to talk about housing starts surpassing the 1 million mark the first time since June 2008.
Surely, this boost in housing starts is good news? Yes, but as Alex explains on the broadcast “we need to look at history here to understand: is it big, is it important?”
To give you a little history: each year between 1968 and 2008, at least 1 million new homes were constructed. The lowest point was just over a million in 1982 and the peak was more than 2 million in 1973. The average number of homes built in those years was 1,531,900.
We all know what happened in 2008. The housing market took a nosedive. An annual average of just 650,000 new homes were constructed from 2009 to 2012. Not nearly enough to keep up with demand and annual household growth.
Despite the uncertainty the last few years, still a whopping 86% of 18-34 year-olds see owning a home in their future.
So as Alex mentions on Fox Business: “We have a supply and demand issue.”
We have more people looking for homes than are available.
“It’s great to see the number getting back to a healthy level, however, we still have huge inventory constraint nationwide. There’s just not enough property right now.”