We are constantly hearing about how there are not enough homes on the market. In major cities across the United States, people are ready to buy homes but there is very low inventory. Credit scores are up, the Millennial generation is ready to jump in, but they cannot find homes.
The question is, is there a solution?
Many economists are predicting that single-family housing starts are going to rise in 2020. Meaning more building will be happening. Capital Economics says that there is an estimated 1 million homes be built this year.
“There are encouraging signs that the cost and availability of materials, lots and labor are all starting to improve,” said the Capital Economics report.
Some of the problems we saw last year included: lack of construction workers, an increase in building materials and the availability of labor. This kept growing the problem. But this year, there are some hopeful signs of a turnaround.
Currently, lumber prices have dropped 40% since May 2019. Also, the unemployment rate currently sits at a very low level, including those in the construction sector.
We hope to see these trends continue throughout the year. The housing shortage is a major problem that we need to fix as quickly as possible.