Duane’s top 10 Reasons to explain the housing shortage in 2013
- Housing starts are less than needed based on population growth. Builder’s having difficulty starting up again after many trades have left the industry.
- Population increasing because of immigration and births The echo boomer (kids of the baby boomers) wave is hitting.
- Boomerang buyers – lost their home to foreclosure, but now back in the market to buy.
- Dormant sellers -They haven’t heard the market is better
- Values haven’t caught up with the loan amounts to create enough equity to allow a move.
- People are staying in their homes 9 years on the average instead of 5.
- New Household formation creating demand –
The 25 year olds are moving out of Mom and Dad’s basement
- People are living longer and staying in their homes.
- Better employment numbers
- Low interest rates have allowed more buyers over the last two years to buy homes.
Bonus reason 11….the flood-took several homes off the market
Displaced residents quickly absorbed all available rentals