10 June 2010

Underproduction in the past three years may lead to a housing shortage in future years.

 By Lawrence Yun var author="Lawrence Yun"; var date='Jun 1, 2010'; if (author!="" && date!='') document.write(' | '); | June 2010,

In the current market, the idea of a housing shortage may be hard to accept. There are simply too many For Sale signs and delinquent mortgages threatening to turn into foreclosures to make a housing shortage seem like a serious possibility. But the big drop in home construction over the last few years suggests that it could become a real issue. Home builders must add 1.6 million to 1.7 million housing units each year to accommodate typical U.S. population increases and replace demolished homes. During the boom years of 2003 to 2006, production far exceeded the historical average, with builders producing a cumulative surplus of 1.3 million units. That overproduction remained hidden, though, because investors flush with easy money were gobbling up property. Once the easy money dried up and prices headed down, investors were forced to dump properties. Today, there might be as many as 700,000 empty units above normal levels. Still, the great underproduction in the past three years is an issue that will need to be reconciled, especially if the trend continues. Once we start seeing new household formation again, a housing shortage is something we won’t be able to dismiss too quickly.

The market is showing signs of recovery and is improving everyday. The Royal-Skies Team can handle all of your real-estate needs, and run the extra mile so you can relax with all the worries of finding the home of your dreams. You can check us out on the web at Kingsland GA Homes for Sale, or Saint Marys Georgia Homes for Sale. If you are looking to sell your home you should check out Your Home Listing Specialist. We also have several other sites that specialize in specific areas of interest. We have a site for Navy relocation and order placement, which is Stay Navy Homes, or if your looking for Retirement homes in Southesat Georgia then please check out Coastal GA Homes. These sites can really benifit those of you who are looking for a quiet coastal retreat from the hustle and bustle of big city living.

Comment Notification

Subscribe to this post's comments using RSS

Comments

No Comments

Leave a Comment

Comment Policy: No HTML allowed. URIs and line breaks are converted automatically. Your e–mail address will not show up on any public page.

(required)
(optional)
(required)