1.2 Million Homes
Did you know just to break even in this country we need 1.2 million new homes a year to be built? That is how many homes a year we lose to floods, fires, tornados, earthquakes, physical obsolescence and other means.
Since 2006, we have only averaged 300,000 to 400,000 new homes a year being built in this country.
Did you know that even in these dire economic times our country still grows by nine (9) million additional residents a year.
So you can see where I’m going with this. I have written many times that once the economy in this country improves; a giant inventory problem is going to take place, and prices will escalate faster than anyone wants to believe.
In the last five years, just to break even we needed six (6) million new homes to be built. At best we had two (2) million new homes built, leaving our country with a shortage of four (4) million homes.
This will catch up with us, once Washington D.C. gets their house in order.
What prompted me to write about this inventory shortage once again was an article I read this morning. I would have assumed that many more families were doubling up in their dwellings due to the economy. While this is true to a certain degree, what I read was a real eye opener.
Did you know that single person dwellings have increased by 27% in just the last three (3) years? While many of these single person dwellings are occupied by the young people in this country, the staggering growth comes from the elderly.
The elderly, when they lose a companion are choosing to stay in their homes by a staggering percentage. The article stated that this is a social phenomenon that we will have to address as a nation going forward.
The elderly no longer want to go into a retirement home (old folks’ home) and instead are staying set in their own homes. With the baby boomer generation shifting the dynamics of this country at an alarming rate, this will also contribute to the inventory shortage that I keep writing about.
The homes of the elderly use to come on the market, now what I’m hearing is that these homes won’t be coming on the market, and instead will remain occupied for Twenty (20) or more years beyond when they use to come on the market.
Add that to the growth of nine (9) million more residents moving to this country every year and a severe shortage of new homes being build and what do you get?
I know many of you that I have spoken with do not agree with me concerning our impending inventory shortage, but the facts seem to support me. We have already seen our national inventory go from over two (2) years down to a national inventory level of seven (7) months. Depending on what report you read.
No one will ever accuse me of my glass not being ½ full.
Mr. James A. Crumbaugh III is CEO and the founder of Allison James Estates and Homes, the first and largest Virtual Real Estate Brokerage in the country. You may reach Mr. Crumbaugh at email@example.com
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