Monday Market Update: New Reports Released On Inventory Issues & Buyer Wants
Inventory data and solutions + buyers hopes and needs are here.
What a week! The first true heat wave of the summer season is upon us and the market madness continues to sizzle. This week we wanted to share the highlights of two data-based reports, “Housing Is Critical Infrastructure: Social and Economic Benefits of Building More Housing” (Rosen Group/NAR®) and “Homebuyers Seek Versatile Homes in Post-Pandemic 2021” (Realtor.com®). We have included the highlights of each article below, and encourage you to read the releases in full for further information and detail.
HOUSING IS CRITICAL INFRASTRUCTURE: SOCIAL AND ECONOMIC BENEFITS OF BUILDING MORE HOUSING / Rosen Consulting Group & NAR®
This report released on June 16, 2021 summarizes the causes of the housing shortage and provides potential solutions largely rooted in local and federal economic policy.
“There is a strong desire for homeownership across this country, but the lack of supply is preventing too many Americans from achieving that dream. It’s clear from the findings of this report and from the conditions we’ve observed in the market over the past few years that we’ll need to do something dramatic to close this gap.” ~ Lawrence Yun, NAR® Chief Economist
In short, when comparing the 20-year periods of 1968-2000 and 2000-2020, every major of the region of the country is seeing the results of a severe underinvestment in housing production in the last 2 decades. Housing stock grew 1.7% from 1968-2000, yet only 1% in the last two decades and .7% in the last decade. The result is an estimated gap of 6.8 million housing units.
Suggested solutions include addressing large shortages in capital lending for the development of affordable housing, incentivizing shifts in local zoning, converting underutilized commercial space and applying federal resources to address rising construction costs plus labor & material shortages.
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HOMEBUYERS SEEK VERSATILE HOMES IN POST-PANDEMIC 2021 / Realtor.com®
Written by Sr. Economist George Ratiu, this June 17th release reveals what we have been observing for the last 12-15 months – that homeowners want & need more versatility in their homes and lifestyles respectively. Data points cited include:
| Buyers want more space on account of expanding households
| Low interest rates are driving more purchases
| Distance desires include being closer to family and the ability to be farther from one’s office as remote options continue
| 3 bedrooms, 2.5 bathrooms top list of desired home layouts
| Garages, updated kitchens and quiet locations are the most important home features
| 62% of buyers plan to move away from their current city or town
Just because consumers want to buy does not mean that it is easy! Challenges include fierce competition which makes selling a current home and buying a replacement home very difficult. Other potential buyers are still waiting out employment uncertainties in a post-pandemic environment and ensuring they know where there job will be if not committed to remote work.
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We sincerely hope that you have found this week’s update helpful; please check back each week (preferably from the beach!) to see what other trends, perspectives & data will be revealed this summer.
Resources Used:
Housing is Critical Infrastructure: Social and Economic Benefits of Building More
Homebuyers Seek Versatile Homes in Post-Pandemic 2021
All my best,
Bobbi Decker
DRE#00607999
Broker Associate
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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