The gap between home supply and demand in the U.S. is widening, according to a new report. The supply of homes for sale nationwide is near a record low – a fact well known to home buyers who noticed the slim pickings and high competition over the few available listings. Realtor.com released new research this week that shows that the U.S. is short 5.24 million homes, up 1.4 million from 2019.
The shortage of homes is not just attributable to homeowners who are hanging on to their properties longer than ever but also due to a severe decline in new home construction over the last decade. The U.S. Census Bureau reports that between January 2012 and June 2021, there were 12.3 million new households formed in the U.S. However, during that time there were only seven million new single-family homes constructed.
The same report noted that even if homebuilders doubled their production rate, it would take up to six years to close the gap between supply and demand.
Mea, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.
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