VIP Financial Education's video: Why Are There So Few Homes For Sale Housing Deficit Explained

Why the heck are there so few homes? The housing shortage continues to rage on in the US despite the Fed’s efforts via rate hikes and subsequently higher mortgage rates. Estimates on the exact magnitude of the housing deficit in the country vary, but they all indicate a shortage in the millions. According to recent estimates from Freddie Mac, the United States is short approximately 3.8 million housing units, encompassing both for-rent and for-sale properties. This shortfall means that the number of new households forming exceeds the number of homes available to accommodate them. Several factors contribute to the housing shortage. There is a lack of available labor to construct homes, along with regulations related to land use and zoning. Additionally, pushback against new construction, known as NIMBYism, in suburbs and cities further hinder housing development. The housing crisis was exacerbated by a significant decline in homebuilding activity following the Great Recession, which never fully recovered. The shift towards remote work during the pandemic also increased the demand for more spacious housing. As a result of the housing shortage, there is a low inventory of homes on the market. Redfin reported a 39% decrease in available homes compared to five years ago. This limited supply is a major factor preventing significant declines in house prices. Interestingly, contrary to expectations, higher mortgage rates did not lead to more substantial price reductions and increased affordability. The economy has remained surprisingly strong, resulting in homeowners having little financial incentive to sell their properties. Many mortgage holders are holding on to their homes, benefiting from record-low mortgage rates. Moreover, a significant number of individuals bought homes or refinanced their mortgages during the pandemic-era boom, reducing the desire for further relocation. The impact of these factors, including low inventory and strong economic conditions, has resulted in limited decreases in house prices. Get one-on-one coaching with Matthew Pillmore: ► http://www.FreeCoachingCalendar.com Get your FREE Cash Flow Cruncher budgeting spreadsheet here: ► http://www.cashflowcruncher.com It's way more than just a budgeting spreadsheet! Manage your finances completely and easily with the Cash Flow Cruncher, our gift to you just for being a viewer of the channel! Getting into Real Estate? Check out the Real Estate Investment Analysis Worksheet, a FREE resource that helps you calculate whether or not a property will be a money-making machine for you! ► http://www.investmentanalysisworksheet.com Want more actionable financial tips and tricks like this one? Check out our YouTube channel here https://www.youtube.com/vipfinancialed Make sure to check out our social channels for more insight and industry news! Facebook - https://www.facebook.com/VIPFinancialEducation/ Instagram - https://www.instagram.com/vipfinancialed/ Instagram (Lifestyle) - https://www.instagram.com/vipfinancialedlifestyle/ Twitter - https://twitter.com/VIPFinancialEd LinkedIn - https://www.linkedin.com/in/vipfinancialed/ BBB A+ Rating - https://www.bbb.org/denver/business-reviews/financial-services/vip-enterprises-llc-in-westminster-co-90024254/ Disclaimer and Waiver — VIP Enterprises, LLC, its owners, officers, directors, employees, subsidiaries, service providers, content providers and agents (referred to as "VIP Financial Education") are not financial or investment advisers and not licensed to sell securities or investments. None of the information provided is intended as investment, tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement, of any company, security, fund, or other offerings. The information should not be relied upon for purposes of transacting securities or other investments. Your use of the information contained herein is at your own risk and results always vary. The content is provided 'as is' and without warranties, either expressed or implied. VIP Enterprises does not promise or guarantee any income or particular result from your use of the information contained herein. Under no circumstances will VIP Enterprises be liable for any loss or damage caused by your reliance on the information contained herein. It is your responsibility to evaluate any information, opinion, advice or other content contained. Please seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, or other content. Furthermore, from time to time VIP Enterprises may earn an affiliate commission when a viewer purchases a product, program, or service as a result of our content.