Let’s talk about… jobs & housing! You may wonder why we keep talking about inventory levels and the housing shortage, and there is one very good reason that applies on a local and national level. As stated by NAR Chief Economist Lawrence Yun above… there has been an ‘unrelenting 20 million net job additions for over a decade since 2010.’ Yet, housing construction levels have not reached these gains, nor anywhere close!
Related to this, NAR® recently introduced their Housing Shortage Tracker, an interactive United States map that enables users to hover over 178 metropolitan areas and see how many homes each area needs to build in order to keep up with the increased demand for housing based on job creation. View this insightful tool HERE.
Sample Snapshot, Click HERE To Hover & View Results
For example, hover over the San Jose-Sunnyvale-Santa Clara metro; you will see that only one single-family housing permit is issued for every 10 jobs created. There have been 71,900 jobs added, yet only 7,278 SFR permits added.
For the San Francisco-Oakland-Hayward metro, one new permit is issued for every 12 new jobs; the addition of 167,800 jobs has been met with only 13,658 single-family unit permits.
These figures are vastly differently from the historical averages in which 1 permit has been issued for every 2 new jobs. Thus, the issue is multiplying exponentially as job creation surges ahead and housing permits drag sluggishly behind.
Sellers: Please let me know if you have any questions about what this data means for you. With millennials turning 30, entry-level homes are especially in demand, as well as homes in desirable school districts and those near commute corridors. Furthermore, the housing shortage means that many of the ‘old-school’ trends may not apply – you may not need to remodel or only consider listing in certain seasons. Demand is ongoing and many homeowners have waited so long to find a home that they are more than ready and willing to make it their own!
Buyers: Your job is a little harder but not impossible. Prioritizing your needs and wants without getting desperate or emotional will be key. Furthermore, it will be to your utmost advantage to work with an active, full-time, highly-networked agent who can stay on top of what is coming to market, what is available off-market and what you need to do to win what is on the market.
Please let me know if you have any questions, at any time! I would be happy to help!
All my best,
NAR Instructor….“Designations Create Distinctions”
CIPS, SRS, ABR, CRS, SRES, GRI, CLHMS,
REI, AHWD, RSPS, MSLG
Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/