America Is Short of Over 5 Million Homes Amid Surge in Demand and Lack of Construction: Report

The United States is short of more than 5 million homes, driven by increased housing demand across the country and a lack of materials and workers in the construction industry, according to new research from Realtor.com.

Data released on Sept. 9 show that the United States is short of 5.24 million homes, an increase of 1.4 million from the 2019 gap of 3.84 million, as per the U.S. Census.

Between 2012 and June 2021, 12.3 million American households were formed, but just 7.5 million single-family homes were started, and 7 million single-family homes were completed during this same period of time.

The report noted that if household formations were to continue at the current five-year average, home completions would have to triple production in order to close the gap within five to six years.

However, if household formations were to remain at the same pace while home completions increase, it would only take five to six years to close the gap between the two.

Construction companies were already suffering from labor shortages well before the COVID-19 pandemic began, but have since been plagued with further issues surrounding supply chain management leaving contractors unable to source basic materials, and the skyrocketing prices of building materials, all of which have further exacerbated that preexisting shortage.

The situation left builders simply unable to afford to build more homes amid rising costs.

Meanwhile, demand for housing surged amid the pandemic, which the Federal Reserve notes could be down to factors such as lower interest rates, homeowners being reluctant to put their homes for sale, and generous mortgage relief programs allowing homeowners to pause or reduce their payments, among others.

The increasing gap between supply and demand has also seen a surge in higher prices for new homes, with a lower percentage of affordable homes being built and sold in 2021 compared to 2018 to 2020, Realtor.com found.

Just 32 percent of new homes were sold at $300,000 or less in the first half of 2021, down from 43 percent in 2018.

“The pandemic has certainly exacerbated the U.S. housing shortage, but data shows household formations outpaced new construction long before COVID. Put simply, new construction supply hasn’t been meeting demand over the last five years,” Danielle Hale, chief economist for Realtor.com, told CNBC.

“Millennials, many of whom are now in their 30s and even 40s, have debunked the industry’s ‘renter generation’ expectations,” she added.

While the report shows a significant shortage in housing, it noted that overall, the market is still looking relatively strong for potential homebuyers, builders and sellers alike.

Furthermore, the low rates of household formation so far in 2021 is also giving builders time to catch up on the growing demand for homes, allowing them to potentially make leeway and close in on the gap between formations and constructions, meaning the housing shortage could soon start declining. 

By Katabella Roberts

Internet Explorer Channel Network
News Related

OTHER NEWS

DeFi: The Ever Evolving Ecosystem

The idea of Decentralized Finance (DeFi) was brought forward by the MakerDAO platform in 2014 when it launched its own crypto “DAI” later on within the Ethereum network in December ... Read more »

Nykaa Acquires D2C Skincare Brand Dot & Key

Nykaa, a beauty and fashion e-commerce platform, on Friday, announced the acquisition of the Indian skincare brand Dot & Key. This is the first direct-to-consumer (D2C) beauty brand acquired by ... Read more »

Robinhood's crypto wallet waitlist has well over 1 million people, CEO Vlad Tenev says

© Kimberly White/Getty Images for Robinhood Vlad Tenev, CEO and co-founder, Robinhood. Kimberly White/Getty Images for Robinhood More than 1 million people have signed up for Robinhood’s crypto wallet, CEO ... Read more »

China pulls Boston Celtics NBA games after player calls Xi Jinping "brutal dictator": report

Chinese President Xi Jinping was called a “brutal dictator” by a Boston Celtics player. China has pulled the online streaming of Boston Celtics NBA games after one of its players ... Read more »

Kerala Lottery Result: 'Nirmal NR-247' lottery winners to be announced at 3pm

Kerala had set up India’s first lottery department in 1967. Kerala Lottery Result: The Kerala State Lottery Department is set to announce the results of ‘Nirmal NR-247’ lottery at 3pm on ... Read more »

Lessons Learned From Scaling a Jewelry Business To 8 Figures

After purchasing Buchroeders Jewelers from his family, Mills Menser launched Diamond Banc. He did so in hopes of changing the way the jewelry industry does business. Handout While many doubted ... Read more »

Can Hybrid Learning Models That Leverage EdTech Make Students Independent Learners?

Every decade or so, the education system goes through a reformation. Sometimes, central boards make the decision to change the curriculum and introduce new subjects, other times, they remove redundant ... Read more »

Startup Funding, Challenges And Opportunities

In his thoroughly researched book, India Unbound, one of the most fascinating thinkers of modern India Gurcharan Das points out that the idea of entrepreneurship ranks third in the caste ... Read more »

A Digitalpreneur On Top Digital Marketing Trends To Look Out For In 2021

The closer we look around ourselves, the more we realize how things have been on a constant rise since the last few years, owing to the tremendous developments and advancements ... Read more »

This AI-Enabled StartUp Is Helping Businesses Tackle Digital Fraud

Can you recall the last time you got a quality lead by running an ad campaign? Or are you also drowning in the ‘lots of impressions and no clicks’ boat? ... Read more »

MacBook Air specifications leaked days after Apple launches MacBook Pro with M1 Max chip

The affordable version of the MacBook is expected to be thin and light. (Image courtesy: Jon Prosser, RendersbyIan) MacBook Air specifications and design details have leaked online. Apple is rumoured ... Read more »

Actor Alec Baldwin fired prop gun that killed cinematographer on film set, injured another: US authorities

Alec Baldwin is producing and starring in ‘Rust’. Production for the Western has been halted. (File photo; Carlo Allegri/ Reuters) Alec Baldwin, Hollywood actor and producer, fired a prop gun ... Read more »

Prop firearm accident on Alec Baldwin's movie set: one crew member dead, another injured

Alec Baldwin is producing and starring in ‘Rust’. Production for the Western has been halted. Santa Fe, N.M. (AP) — A woman has been killed and a man injured Thursday ... Read more »

Lottery Sambad Result October 22: 'Dear Bangabhumi Ajay' lottery winners to be listed at 4pm

Lottery Sambad Result: The West Bengal State Lottery Department will announce the results of its ‘Dear Bangabhumi Ajay’ lotteryat 4pm on October 22. The results can be checked at lotterysambadresult.in. The winner of the ... Read more »

Construction Startup Tvasta Raises Funding To Build 3D Printed Homes

Habitat for Humanity International through its Shelter Venture Fund recently invested INR 30 million ($411,000) in Tvasta Manufacturing Solutions Ltd. to increase the production of affordable 3D printed homes in ... Read more »

Federal Reserve: Businesses Say Vaccine Mandates Are Hurting Employment

The Federal Reserve on Thursday said that businesses have reported COVID-19 vaccine mandates have hurt employment and are contributing to labor supply problems—even before President Joe Biden’s previously announced vaccine mandate for private businesses goes ... Read more »

Rare Coin Made in Colonial New England Could Sell for $300,000

An extraordinarily rare coin minted in Boston in 1652 could sell for approximately $300,000 at a London auction next month, AP News reports.  Although the silver shilling was worth just pennies in ... Read more »

Apple to Require Daily Covid Tests for Unvaccinated Employees

Every time an unvaccinated Apple employee works from the office instead of remotely, they’ll be required to take a covid-19 test, according to Bloomberg. SOPA Images | Getty Images That ... Read more »

Harnessing Energy From Waste

Come winter and India’s national capital gets shrouded in a thick blanket of smog that is a result of the humongous burning of crop stubble on acres and acres of ... Read more »

Breaking: Brian Laundrie Found Dead, FBI Confirms

On Thursday evening, the FBI confirmed that the skeletal remains found in Myakkahatchee Creek Environmental Park in North Port, Florida belonged to 23-year-old Brian Laundrie, the sole person of interest ... Read more »

Tip For a Successful Jewelry Business: A Success Story

Dedication, drive, and a well-thought-out company strategy are the characteristics of a successful entrepreneur. Handout Despite the fact that the fundamental concepts of company success and growth remain the same, ... Read more »

'Squid Game' Is Causing a Massive Spike in People Wanting to Learn Korean

Squid Game has officially become the most-streamed show in Netflix history. ADEK BERRY | Getty Images Netflix confirmed last week that the Korean drama series had hit 111 million households viewing ... Read more »

The Crypto Wallet Hustle -- What You Need to Know

Since the inception of time, there have been nefarious individuals looking to take advantage of their fellow humans: pickpockets, conmen, hustlers, etc. So, the rise of digital and crypto scammers is ... Read more »

Elon Musk Posts Sexual Bitcoin Meme and Sends Twitter Into a Frenzy

Elon Musk is back at it again with his Twitter antics, but this time it isn’t to rip on longstanding rival Jeff Bezos or to promote the meme-able cryptocurrency Dogecoin. ... Read more »

Unemployment Claims Fall to Pandemic Low Amid Tight Labor Market

The Department of Labor reported that the number of Americans filing new claims for jobless benefits dropped to a 19-month-low last week. First-time filings for unemployment claims totaled 290,000 for that week ended ... Read more »

Netflix Employees Walk Out Over Dave Chappelle Special

Some Netflix employees walked out Wednesday in protest of the latest comedy special from Dave Chappelle, The Closer, which features jokes about transgender people. They and allies rallied and chanted, ... Read more »

Mariah Carey Encourages Women to Enter the Crypto Game, Support Black Girls Code

Mariah Carey is partnering with cryptocurrency platform Gemini on a new campaign aiming at making the asset class less daunting and more accessible to women. Jamie McCarthy | Getty Images According to Gemini, ... Read more »

Popeyes' New Collaboration With Megan Thee Stallion Just Broke the Internet

Real hot girl chicken! Scott Olson | Getty Images The iconic chicken chain has teamed up with Grammy Award-winning rapper and social media icon Megan Thee Stallion for a full ... Read more »

This Is Why My Dad Always Had a Full Tank Of Gas In 1973

In 1973 there was a huge oil crisis. How huge? Imagine the price of a gallon of gas rising almost 50% in just a few months. Imagine President Biden — as President ... Read more »

SpaceX Will Make Elon Musk a Trillionaire, According to Predictions

Elon Musk is currently the world’s richest person, with a net worth of $242 billion. And according to an expert at investment-banking company Morgan Stanley, that number is well-positioned to get even ... Read more »

First Western (MYFW) Q3 Earnings and Revenues Beat Estimates

First Western (MYFW) came out with quarterly earnings of $0.81 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $1.20 per share a ... Read more »

Thermo Fisher Scientific (TMO) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Thermo Fisher Scientific (TMO) closed at $608.41, marking a +0.46% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.3%. ... Read more »

Bay Commercial Bank (BCML) Meets Q3 Earnings Estimates

Bay Commercial Bank (BCML) came out with quarterly earnings of $0.51 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.27 per share a year ... Read more »

TrustCo Bank (TRST) Beats Q3 Earnings Estimates

TrustCo Bank (TRST) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $0.75 per share a ... Read more »

Volkswagen AG (VWAGY) Outpaces Stock Market Gains: What You Should Know

Volkswagen AG (VWAGY) closed at $32 in the latest trading session, marking a +1.62% move from the prior day. This change outpaced the S&P 500’s 0.3% gain on the day. ... Read more »

Colony Bankcorp (CBAN) Beats Q3 Earnings and Revenue Estimates

Colony Bankcorp (CBAN) came out with quarterly earnings of $0.57 per share, beating the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.39 per share a ... Read more »

Bar Harbor Bankshares (BHB) Beats Q3 Earnings and Revenue Estimates

Bar Harbor Bankshares (BHB) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.61 per share ... Read more »

Sigma Labs, Inc. (SGLB) Reports Q3 Loss, Tops Revenue Estimates

Sigma Labs, Inc. (SGLB) came out with a quarterly loss of $0.24 per share versus the Zacks Consensus Estimate of a loss of $0.12. This compares to loss of $0.42 ... Read more »

Shell Oil (RDS.A) Stock Sinks As Market Gains: What You Should Know

Shell Oil (RDS.A) closed at $48.85 in the latest trading session, marking a -1.19% move from the prior day. This change lagged the S&P 500’s daily gain of 0.3%. – ... Read more »

SVB Financial (SIVB) Q3 Earnings and Revenues Beat Estimates

SVB Financial (SIVB) came out with quarterly earnings of $7.26 per share, beating the Zacks Consensus Estimate of $5.06 per share. This compares to earnings of $8.47 per share a ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic